Investors interested in Real Estate - Operations stocks are likely familiar with PennyMac Mortgage (PMT) and Landmark Infrastructure Partners (LMRK). 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, PennyMac Mortgage has a Zacks Rank of #1 (Strong Buy), while Landmark Infrastructure Partners has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PMT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
PMT currently has a forward P/E ratio of 10.43, while LMRK has a forward P/E of 30.47. We also note that PMT has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. LMRK currently has a PEG ratio of 6.09.
Another notable valuation metric for PMT is its P/B ratio of 1.03. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LMRK has a P/B of 1.72.
Based on these metrics and many more, PMT holds a Value grade of B, while LMRK has a Value grade of C.
PMT stands above LMRK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PMT is the superior value option right now.
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PennyMac Mortgage Investment Trust (PMT) : Free Stock Analysis Report
Landmark Infrastructure Partners LP (LMRK) : Free Stock Analysis Report
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