Yahoo Finance APLE or GLPI: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Apple Hospitality REIT (APLE) and Gaming and Leisure Properties (GLPI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Apple Hospitality REIT and Gaming and Leisure Properties are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that APLE is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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 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.
APLE currently has a forward P/E ratio of 11.02, while GLPI has a forward P/E of 14.87. We also note that APLE has a PEG ratio of 0.42. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GLPI currently has a PEG ratio of 10.47.
Another notable valuation metric for APLE is its P/B ratio of 1.20. 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, GLPI has a P/B of 3.40.
These metrics, and several others, help APLE earn a Value grade of B, while GLPI has been given a Value grade of D.
APLE stands above GLPI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APLE is the superior value option right now.
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Apple Hospitality REIT, Inc. (APLE) : Free Stock Analysis Report
Gaming and Leisure Properties, Inc. (GLPI) : Free Stock Analysis Report
