We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SP or MNRO: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either SP Plus (SP - Free Report) or Monro Muffler Brake (MNRO - 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 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.
Currently, SP Plus has a Zacks Rank of #1 (Strong Buy), while Monro Muffler Brake has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SP likely has seen a stronger improvement to its earnings outlook than MNRO has recently. But this is only part of the picture for value investors.
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.
SP currently has a forward P/E ratio of 13.25, while MNRO has a forward P/E of 30.40. We also note that SP has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MNRO currently has a PEG ratio of 2.43.
Another notable valuation metric for SP is its P/B ratio of 2.17. 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, MNRO has a P/B of 3.60.
These metrics, and several others, help SP earn a Value grade of B, while MNRO has been given a Value grade of C.
SP 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 SP is likely the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SP or MNRO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either SP Plus (SP - Free Report) or Monro Muffler Brake (MNRO - 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 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.
Currently, SP Plus has a Zacks Rank of #1 (Strong Buy), while Monro Muffler Brake has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SP likely has seen a stronger improvement to its earnings outlook than MNRO has recently. But this is only part of the picture for value investors.
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.
SP currently has a forward P/E ratio of 13.25, while MNRO has a forward P/E of 30.40. We also note that SP has a PEG ratio of 1.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MNRO currently has a PEG ratio of 2.43.
Another notable valuation metric for SP is its P/B ratio of 2.17. 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, MNRO has a P/B of 3.60.
These metrics, and several others, help SP earn a Value grade of B, while MNRO has been given a Value grade of C.
SP 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 SP is likely the superior value option right now.