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SNR or SUI: Which Is the Better Value Stock Right Now?

Zacks Equity Research
·2 min read

Investors interested in REIT and Equity Trust - Residential stocks are likely familiar with New Senior Investment Group (SNR) and Sun Communities (SUI). 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.

Right now, New Senior Investment Group is sporting a Zacks Rank of #2 (Buy), while Sun Communities has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

SNR currently has a forward P/E ratio of 6.55, while SUI has a forward P/E of 30.23. We also note that SNR has a PEG ratio of 1.31. 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. SUI currently has a PEG ratio of 4.23.

Another notable valuation metric for SNR is its P/B ratio of 1.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SUI has a P/B of 3.33.

These metrics, and several others, help SNR earn a Value grade of A, while SUI has been given a Value grade of F.

SNR has seen stronger estimate revision activity and sports more attractive valuation metrics than SUI, so it seems like value investors will conclude that SNR is the superior option right now.


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New Senior Investment Group Inc. (SNR) : Free Stock Analysis Report
 
Sun Communities, Inc. (SUI) : Free Stock Analysis Report
 
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