Back to top

Image: Bigstock

BV or MNRO: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both BrightView Holdings (BV - Free Report) and Monro Muffler Brake (MNRO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BrightView Holdings has a Zacks Rank of #2 (Buy), while Monro Muffler Brake has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BV has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

BV currently has a forward P/E ratio of 16.54, while MNRO has a forward P/E of 31.70. We also note that BV has a PEG ratio of 0.87. 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 2.44.

Another notable valuation metric for BV is its P/B ratio of 1.55. 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, MNRO has a P/B of 4.02.

These are just a few of the metrics contributing to BV's Value grade of A and MNRO's Value grade of D.

BV sticks out from MNRO in both our Zacks Rank and Style Scores models, so value investors will likely feel that BV is the better option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Monro Muffler Brake, Inc. (MNRO) - free report >>

BrightView Holdings, Inc. (BV) - free report >>

Published in