Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Summit Hotel Properties (INN) 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Summit Hotel Properties and Gaming and Leisure Properties are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.

INN currently has a forward P/E ratio of 6.77, while GLPI has a forward P/E of 12.71. We also note that INN has a PEG ratio of 1.44. 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. GLPI currently has a PEG ratio of 3.31.

Another notable valuation metric for INN is its P/B ratio of 0.51. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, GLPI has a P/B of 2.92.

These metrics, and several others, help INN earn a Value grade of A, while GLPI has been given a Value grade of C.

Both INN and GLPI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INN is the superior value option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Summit Hotel Properties, Inc. (INN) : Free Stock Analysis Report

Gaming and Leisure Properties, Inc. (GLPI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research