ARI vs. LADR: Which Stock Should Value Investors Buy Now?

Core Viewpoint - Investors in the REIT and Equity Trust sector should consider Apollo Commercial Finance (ARI) and Ladder Capital (LADR) as potential value investment opportunities [1] Group 1: Investment Strategies - A strong Zacks Rank combined with a high Value grade from the Style Scores system yields the best returns for value investors [2] - The Zacks Rank emphasizes stocks with positive earnings estimate revisions, while Style Scores highlight specific company traits [2] Group 2: Current Rankings and Outlook - Both ARI and LADR hold a Zacks Rank of 2 (Buy), indicating an improving earnings outlook due to positive analyst estimate revisions [3] - Value investors focus on various valuation metrics to identify undervalued companies [4] Group 3: Valuation Metrics - ARI has a forward P/E ratio of 9.44, while LADR has a forward P/E of 11.48 [5] - ARI's PEG ratio is 0.25, indicating a favorable valuation compared to LADR's PEG ratio of 2.31 [5] - ARI's P/B ratio is 0.74, compared to LADR's P/B of 0.94, suggesting ARI is more undervalued [6] - Based on these valuation metrics, ARI is rated with a Value grade of B, while LADR has a Value grade of D [6]