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SRCL vs. WM: Which Stock Is the Better Value Option?
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Investors interested in Waste Removal Services stocks are likely familiar with Stericycle (SRCL - Free Report) and Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Stericycle and Waste Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SRCL has an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
SRCL currently has a forward P/E ratio of 23.27, while WM has a forward P/E of 29.96. We also note that SRCL has a PEG ratio of 2.91. 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. WM currently has a PEG ratio of 3.13.
Another notable valuation metric for SRCL is its P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WM has a P/B of 12.08.
Based on these metrics and many more, SRCL holds a Value grade of B, while WM has a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.
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SRCL vs. WM: Which Stock Is the Better Value Option?
Investors interested in Waste Removal Services stocks are likely familiar with Stericycle (SRCL - Free Report) and Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Stericycle and Waste Management are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SRCL has an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
SRCL currently has a forward P/E ratio of 23.27, while WM has a forward P/E of 29.96. We also note that SRCL has a PEG ratio of 2.91. 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. WM currently has a PEG ratio of 3.13.
Another notable valuation metric for SRCL is its P/B ratio of 1.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, WM has a P/B of 12.08.
Based on these metrics and many more, SRCL holds a Value grade of B, while WM has a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.