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ASHTY or GWW: Which Is the Better Value Stock Right Now?
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Investors interested in Industrial Services stocks are likely familiar with Ashtead Group PLC (ASHTY - Free Report) and W.W. Grainger (GWW - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Ashtead Group PLC has a Zacks Rank of #1 (Strong Buy), while W.W. Grainger has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASHTY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASHTY currently has a forward P/E ratio of 11.29, while GWW has a forward P/E of 16.77. We also note that ASHTY has a PEG ratio of 0.75. 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. GWW currently has a PEG ratio of 1.41.
Another notable valuation metric for ASHTY is its P/B ratio of 3.40. 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, GWW has a P/B of 8.06.
Based on these metrics and many more, ASHTY holds a Value grade of B, while GWW has a Value grade of C.
ASHTY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASHTY is likely the superior value option right now.
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ASHTY or GWW: Which Is the Better Value Stock Right Now?
Investors interested in Industrial Services stocks are likely familiar with Ashtead Group PLC (ASHTY - Free Report) and W.W. Grainger (GWW - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Ashtead Group PLC has a Zacks Rank of #1 (Strong Buy), while W.W. Grainger has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASHTY has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASHTY currently has a forward P/E ratio of 11.29, while GWW has a forward P/E of 16.77. We also note that ASHTY has a PEG ratio of 0.75. 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. GWW currently has a PEG ratio of 1.41.
Another notable valuation metric for ASHTY is its P/B ratio of 3.40. 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, GWW has a P/B of 8.06.
Based on these metrics and many more, ASHTY holds a Value grade of B, while GWW has a Value grade of C.
ASHTY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASHTY is likely the superior value option right now.