Which stock is the best value right now?
Investors interested in REIT and Equity Trust-Retail stocks may have encountered Tanger Factory Outlet, (SKT), and Simon Property (SPG). Which stock offers value investors more bang for their buck? We’ll have to take a closer glance.
A strong Zacks Rank is paired with a high grade in our Value category to help you find great value stocks. Our Style Scores help to identify stocks that have specific characteristics.
Tanger Factory Outlet currently has a Zacks rank of #2 (Buy), and Simon Property has a Zacks rank of #3 (Hold). Stocks that have had their earnings estimates revised in the past are favored by Zacks Rank. Investors should feel confident that SKT is on the rise. This is only one reason value investors are interested.
Value investors tend to use a variety of tried-and true figures to help find stocks that are undervalued at the current share price levels.
The Style Scores System’s Value category looks at several key metrics to identify undervalued companies. These include the P/E ratio, long-favored P/S ratio and earnings yield. We also consider cash flow per share and other fundamentals to determine a company’s fair value.
SKT currently has an forward P/E ratio 10.06 while SPG currently has a forward PE ratio 10.36. SKT also has a PEG ratio 1.13. This figure is very similar to the popular P/E ratio. However, the PEG ratio also takes into account a company’s expected growth rate in EPS. SPG currently boasts a PEG ratio 2.73.
A notable valuation metric for the SKT stock is its P/B rate of 3.74. The P/B ratio is a way to compare a stock’s current market value and its book value. This is the sum of total assets less total liabilities. SPG, however, has a P/B value of 11.95.
Based on these and other metrics, SKT has a Value score of B. SPG has a Score of C.
SKT stands out from SPG both in our Zacks Ranks and Style Scores models. Value investors will feel SKT is the better choice right now.
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Tanger Factory Outlet Centers, Inc. (SKT) : Free Stock Analysis Report
Simon Property Group, Inc. (SPG) : Free Stock Analysis Report