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EPR or ADC: Which Is the Better Value Stock Right Now?

·2 min read

Investors looking for stocks in the REIT and Equity Trust - Retail sector might want to consider either EPR Properties (EPR) or Agree Realty (ADC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, EPR Properties is sporting a Zacks Rank of #2 (Buy), while Agree Realty 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 EPR has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

EPR currently has a forward P/E ratio of 10.85, while ADC has a forward P/E of 20.46. We also note that EPR has a PEG ratio of 0.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ADC currently has a PEG ratio of 2.96.

Another notable valuation metric for EPR is its P/B ratio of 1.50. 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, ADC has a P/B of 1.57.

These are just a few of the metrics contributing to EPR's Value grade of B and ADC's Value grade of D.

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


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EPR Properties (EPR) : Free Stock Analysis Report
 
Agree Realty Corporation (ADC) : Free Stock Analysis Report
 
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Zacks Investment Research