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EEX vs. MNRO: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both Emerald Expositions Events, Inc. (EEX - Free Report) and Monro Muffler Brake (MNRO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Emerald Expositions Events, Inc. and Monro Muffler Brake are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that EEX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

EEX currently has a forward P/E ratio of 2.68, while MNRO has a forward P/E of 22.71. We also note that EEX has a PEG ratio of 0.54. 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. MNRO currently has a PEG ratio of 1.51.

Another notable valuation metric for EEX is its P/B ratio of 0.27. 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 2.19.

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

EEX 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 EEX is likely the superior value option right now.


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

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