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ACM or ALFVY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Aecom Technology (ACM - Free Report) or Alfa Laval AB Unsponsored ADR (ALFVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, both Aecom Technology and Alfa Laval AB Unsponsored ADR are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ACM currently has a forward P/E ratio of 22.98, while ALFVY has a forward P/E of 25.26. We also note that ACM has a PEG ratio of 2.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALFVY currently has a PEG ratio of 2.83.
Another notable valuation metric for ACM is its P/B ratio of 4.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ALFVY has a P/B of 4.55.
These metrics, and several others, help ACM earn a Value grade of B, while ALFVY has been given a Value grade of D.
Both ACM and ALFVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ACM is the superior value option right now.
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ACM or ALFVY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Aecom Technology (ACM - Free Report) or Alfa Laval AB Unsponsored ADR (ALFVY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, both Aecom Technology and Alfa Laval AB Unsponsored ADR are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ACM currently has a forward P/E ratio of 22.98, while ALFVY has a forward P/E of 25.26. We also note that ACM has a PEG ratio of 2.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALFVY currently has a PEG ratio of 2.83.
Another notable valuation metric for ACM is its P/B ratio of 4.35. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ALFVY has a P/B of 4.55.
These metrics, and several others, help ACM earn a Value grade of B, while ALFVY has been given a Value grade of D.
Both ACM and ALFVY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ACM is the superior value option right now.