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MBUU or PII: Which Is the Better Value Stock Right Now?
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Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Malibu Boats (MBUU - Free Report) and Polaris Industries (PII - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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 Malibu Boats and Polaris Industries are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MBUU currently has a forward P/E ratio of 15.06, while PII has a forward P/E of 18.81. We also note that MBUU has a PEG ratio of 1. 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. PII currently has a PEG ratio of 1.25.
Another notable valuation metric for MBUU is its P/B ratio of 6.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PII has a P/B of 7.94.
These are just a few of the metrics contributing to MBUU's Value grade of B and PII's Value grade of C.
Both MBUU and PII are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MBUU is the superior value option right now.
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MBUU or PII: Which Is the Better Value Stock Right Now?
Investors with an interest in Leisure and Recreation Products stocks have likely encountered both Malibu Boats (MBUU - Free Report) and Polaris Industries (PII - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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 Malibu Boats and Polaris Industries are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
MBUU currently has a forward P/E ratio of 15.06, while PII has a forward P/E of 18.81. We also note that MBUU has a PEG ratio of 1. 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. PII currently has a PEG ratio of 1.25.
Another notable valuation metric for MBUU is its P/B ratio of 6.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PII has a P/B of 7.94.
These are just a few of the metrics contributing to MBUU's Value grade of B and PII's Value grade of C.
Both MBUU and PII are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MBUU is the superior value option right now.