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OFC vs. CCI: Which Stock Is the Better Value Option?

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  • CCI

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Corporate Office Properties (OFC) and Crown Castle (CCI). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Corporate Office Properties has a Zacks Rank of #2 (Buy), while Crown Castle has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OFC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

OFC currently has a forward P/E ratio of 11.30, while CCI has a forward P/E of 26.98. We also note that OFC has a PEG ratio of 2.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CCI currently has a PEG ratio of 2.70.

Another notable valuation metric for OFC is its P/B ratio of 1.73. 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, CCI has a P/B of 9.43.

These are just a few of the metrics contributing to OFC's Value grade of B and CCI's Value grade of C.

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


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Corporate Office Properties Trust (OFC) : Free Stock Analysis Report
 
Crown Castle International Corporation (CCI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

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