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PWR vs. JEC: Which Stock Is the Better Value Option?
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Investors interested in Engineering - R and D Services stocks are likely familiar with Quanta Services (PWR - Free Report) and Jacobs Engineering . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Quanta Services has a Zacks Rank of #1 (Strong Buy), while Jacobs Engineering has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PWR is likely seeing its earnings outlook improve to a greater extent. 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 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.
PWR currently has a forward P/E ratio of 10.56, while JEC has a forward P/E of 13.87. We also note that PWR 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. JEC currently has a PEG ratio of 1.38.
Another notable valuation metric for PWR is its P/B ratio of 1.50. 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, JEC has a P/B of 1.76.
Based on these metrics and many more, PWR holds a Value grade of B, while JEC has a Value grade of C.
PWR 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 PWR is likely the superior value option right now.
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PWR vs. JEC: Which Stock Is the Better Value Option?
Investors interested in Engineering - R and D Services stocks are likely familiar with Quanta Services (PWR - Free Report) and Jacobs Engineering . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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, Quanta Services has a Zacks Rank of #1 (Strong Buy), while Jacobs Engineering has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PWR is likely seeing its earnings outlook improve to a greater extent. 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 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.
PWR currently has a forward P/E ratio of 10.56, while JEC has a forward P/E of 13.87. We also note that PWR 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. JEC currently has a PEG ratio of 1.38.
Another notable valuation metric for PWR is its P/B ratio of 1.50. 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, JEC has a P/B of 1.76.
Based on these metrics and many more, PWR holds a Value grade of B, while JEC has a Value grade of C.
PWR 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 PWR is likely the superior value option right now.