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

MNRO MCW

Investors interested in Consumer Services - Miscellaneous stocks are likely familiar with Monro Muffler Brake (MNRO - Free Report) and Mister Car Wash (MCW - 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.

Currently, Monro Muffler Brake has a Zacks Rank of #2 (Buy), while Mister Car Wash 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 MNRO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.

MNRO currently has a forward P/E ratio of 27, while MCW has a forward P/E of 27.99. We also note that MNRO has a PEG ratio of 1.80. 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. MCW currently has a PEG ratio of 2.07.

Another notable valuation metric for MNRO is its P/B ratio of 2.20. 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, MCW has a P/B of 3.37.

Based on these metrics and many more, MNRO holds a Value grade of B, while MCW has a Value grade of C.

MNRO stands above MCW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MNRO is the superior value option right now.

Top 5 Dividend Stocks for Your Retirement

Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.

Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.

See our Top 5 now – the report is FREE >>