Seeking Alpha
Long/short equity, deep value, value
Profile| Send Message|
( followers)  

A high Price/Earnings Ratio indicates that investors are expecting higher earnings growth moving forward and willing to pay a premium for it. A firm that holds a lower P/E Ratio offers better “value” investment potential given that future earnings are cheaper. This price multiple valuation metric is an easy tool to see which companies may be offering better investment opportunities than others.

A firm’s 1-Year Fiscal Revenue Growth shows how well a firm has grown the top line over an extended period of time. With investors clamoring for growth this is one metric to use when trying to identify firms that continue to grow despite global economic uncertainty.

We ran a screen for Real Estate companies with a P/E Ratio greater than 13. From this narrowed pool we then screened for firm’s had a 1-Year Fiscal Revenue Growth Rate of at least 15% or higher.

The P/E Ratio ranks the list from highest to lowest:

1. Health Care REIT, Inc. (HCN)

Sector

Real Estate

Industry

REIT - Healthcare Facilities

Market Cap

$8,725M

Beta

0.87

The company owns and operates a variety of health care and senior housing real estate. The firm’s P/E Ratio is 93.46. HCN’s 1-Year Fiscal Revenue Growth Rate is 24.62%. The short interest was N/A as of 08/15/2011.

2. E-House China Holdings Ltd. (EJ)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$500M

Beta

1.72

The company offers real estate services in China. The firm’s P/E Ratio is 43.29%. EJ’s 1-Year Fiscal Revenue Growth Rate is 19.02%. The short interest was N/A as of 08/15/2011.

3. Digital Realty Trust, Inc. (DLR)

Sector

Real Estate

Industry

REIT - Industrial

Market Cap

$5,684M

Beta

0.99

The company owns and manages technology-related real estate. The firm’s P/E Ratio is 40.00. DLR’s 1-Year Fiscal Revenue Growth Rate is 35.83%. The short interest was 15.00% as of 08/15/2011.

4. Dupont Fabros Technology Inc. (DFT)

Sector

Real Estate

Industry

REIT - Office

Market Cap

$1,329M

Beta

0.98

The firm’s P/E Ratio is 24.75. DFT’s 1-Year Fiscal Revenue Growth Rate is 21.10%. The short interest was 23.90% as of 08/15/2011.

5. Vornado Realty Trust (VNO)

Sector

Real Estate

Industry

REIT - Diversified

Market Cap

$15,142M

Beta

1.77

The company is a real estate investment trust with a exposure concentrated New York City and other prime areas of the East Coast. The firm’s P/E Ratio is 20.49%. VNO’s 1-Year Fiscal Revenue Growth Rate is 35.26%. The short interest was 3.00% as of 08/15/2011.

6. CB Richard Ellis Group Inc. (CBG)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$4,568M

Beta

2.76

The company offers a variety of real estate services. The firm’s P/E Ratio is 20.20. CBG’s 1-Year Fiscal Revenue Growth Rate is 22.79%. The short interest was 3.80% as of 08/15/2011.

7. Jones Lang LaSalle, Inc. (JLL)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$2,542M

Beta

1.93

The company offers real estate and investment management services. The firm’s P/E Ratio is 15.48. IJLL’s 1-Year Fiscal Revenue Growth Rate is 17.93%. The short interest was 1.30% as of 08/15/2011.

8. HFF, Inc. (HF)

Sector

Real Estate

Industry

Real Estate Services

Market Cap

$345M

Beta

2.47

The company provides capital markets and commercial real estate services. The firm’s P/E Ratio is 13.59. HF’s 1-Year Fiscal Revenue Growth Rate is 80.67%. The short interest was 4.00% as of 08/15/2011.

We hope this list helps as investors do their own due diligence on Real Estate stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 10 Overvalued Real Estate Stocks Trying To Turn Around With Top Line Growth