Investors interested in stocks from the Real Estate - Operations sector have probably already heard of TPG RE Finance Trust (TRTX) and WillScot (WSC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, TPG RE Finance Trust is sporting a Zacks Rank of #1 (Strong Buy), while WillScot has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that TRTX likely has seen a stronger improvement to its earnings outlook than WSC has recently. However, value investors will care about much more than just this.
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.
TRTX currently has a forward P/E ratio of 7.37, while WSC has a forward P/E of 21.95. We also note that TRTX has a PEG ratio of 0.22. 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. WSC currently has a PEG ratio of 2.04.
Another notable valuation metric for TRTX is its P/B ratio of 0.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WSC has a P/B of 5.91.
Based on these metrics and many more, TRTX holds a Value grade of B, while WSC has a Value grade of D.
TRTX stands above WSC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TRTX is the superior value option right now.
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WillScot Holdings Corporation (WSC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
