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RSG vs. WCN: Which Stock Should Value Investors Buy Now?
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Investors interested in Waste Removal Services stocks are likely familiar with Republic Services (RSG - Free Report) and Waste Connections (WCN - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Republic Services and Waste Connections are holding a Zacks Rank of # 2 (Buy). 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. But this is only part of the picture for value investors.
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.
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.
RSG currently has a forward P/E ratio of 30.25, while WCN has a forward P/E of 37.71. We also note that RSG has a PEG ratio of 2.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WCN currently has a PEG ratio of 2.98.
Another notable valuation metric for RSG is its P/B ratio of 4.96. 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, WCN has a P/B of 5.30.
These metrics, and several others, help RSG earn a Value grade of B, while WCN has been given a Value grade of C.
Both RSG and WCN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RSG is the superior value option right now.
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RSG vs. WCN: Which Stock Should Value Investors Buy Now?
Investors interested in Waste Removal Services stocks are likely familiar with Republic Services (RSG - Free Report) and Waste Connections (WCN - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Republic Services and Waste Connections are holding a Zacks Rank of # 2 (Buy). 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. But this is only part of the picture for value investors.
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.
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.
RSG currently has a forward P/E ratio of 30.25, while WCN has a forward P/E of 37.71. We also note that RSG has a PEG ratio of 2.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WCN currently has a PEG ratio of 2.98.
Another notable valuation metric for RSG is its P/B ratio of 4.96. 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, WCN has a P/B of 5.30.
These metrics, and several others, help RSG earn a Value grade of B, while WCN has been given a Value grade of C.
Both RSG and WCN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RSG is the superior value option right now.