Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Postal Realty Trust (PSTL) and National Health Investors (NHI). 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, Postal Realty Trust is sporting a Zacks Rank of #2 (Buy), while National Health Investors has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that PSTL likely has seen a stronger improvement to its earnings outlook than NHI has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
PSTL currently has a forward P/E ratio of 11.96, while NHI has a forward P/E of 14.65. We also note that PSTL has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NHI currently has a PEG ratio of 4.33.
Another notable valuation metric for PSTL is its P/B ratio of 0.97. 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, NHI has a P/B of 2.40.
These metrics, and several others, help PSTL earn a Value grade of B, while NHI has been given a Value grade of D.
PSTL has seen stronger estimate revision activity and sports more attractive valuation metrics than NHI, so it seems like value investors will conclude that PSTL is the superior option right now.
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Postal Realty Trust, Inc. (PSTL) : Free Stock Analysis Report
National Health Investors, Inc. (NHI) : Free Stock Analysis Report
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