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CSR or ESS: Which Is the Better Value Stock Right Now?

Investors with an interest in REIT and Equity Trust - Residential stocks have likely encountered both Centerspace (CSR) and Essex Property Trust (ESS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Right now, Centerspace is sporting a Zacks Rank of #2 (Buy), while Essex Property Trust has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CSR likely has seen a stronger improvement to its earnings outlook than ESS has recently. But this is only part of the picture for value investors.

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.

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The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CSR currently has a forward P/E ratio of 12.03, while ESS has a forward P/E of 16.02. We also note that CSR has a PEG ratio of 1.72. 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. ESS currently has a PEG ratio of 3.07.

Another notable valuation metric for CSR is its P/B ratio of 1.02. 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, ESS has a P/B of 2.79.

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

CSR sticks out from ESS in both our Zacks Rank and Style Scores models, so value investors will likely feel that CSR is the better option right now.

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Centerspace (CSR) : Free Stock Analysis Report

Essex Property Trust, Inc. (ESS) : Free Stock Analysis Report

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Zacks Investment Research