TRTX vs. SDHC: Which Stock Is the Better Value Option?

Core Viewpoint - The comparison between TPG RE Finance Trust (TRTX) and Smith Douglas Homes Corp. (SDHC) indicates that TRTX is more attractive to value investors due to its stronger earnings outlook and favorable valuation metrics [1][3]. Valuation Metrics - TRTX has a forward P/E ratio of 8.62, significantly lower than SDHC's forward P/E of 17.39, suggesting TRTX is undervalued relative to SDHC [5]. - The PEG ratio for TRTX is 2.15, while SDHC's PEG ratio is much higher at 11.99, indicating TRTX's expected earnings growth is more favorable [5]. - TRTX's P/B ratio stands at 0.62, compared to SDHC's P/B of 2.26, further supporting the notion that TRTX is undervalued [6]. Zacks Rank and Style Scores - TRTX holds a Zacks Rank of 2 (Buy), while SDHC has a Zacks Rank of 5 (Strong Sell), reflecting a stronger improvement in TRTX's earnings outlook [3]. - The Value grade for TRTX is B, whereas SDHC has a Value grade of F, highlighting TRTX's superior valuation metrics [6].