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OFC or OLP: Which Is the Better Value Stock Right Now?

·2 min read

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Corporate Office Properties (OFC) and One Liberty Properties (OLP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Corporate Office Properties has a Zacks Rank of #2 (Buy), while One Liberty Properties has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that OFC likely has seen a stronger improvement to its earnings outlook than OLP has recently. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OFC currently has a forward P/E ratio of 12.39, while OLP has a forward P/E of 16. We also note that OFC has a PEG ratio of 2.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. OLP currently has a PEG ratio of 2.67.

Another notable valuation metric for OFC is its P/B ratio of 1.89. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OLP has a P/B of 2.15.

Based on these metrics and many more, OFC holds a Value grade of B, while OLP has a Value grade of C.

OFC stands above OLP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that OFC is the superior value option right now.


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Corporate Office Properties Trust (OFC) : Free Stock Analysis Report
 
One Liberty Properties, Inc. (OLP) : Free Stock Analysis Report
 
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