SIEGY or ASHTY: Which Is the Better Value Stock Right Now?

SIEGY ASHTY

Investors looking for stocks in the Industrial Services sector might want to consider either Siemens AG (SIEGY - Free Report) or Ashtead Group PLC (ASHTY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Siemens AG is sporting a Zacks Rank of #2 (Buy), while Ashtead Group PLC has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIEGY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

SIEGY currently has a forward P/E ratio of 17.24, while ASHTY has a forward P/E of 17.32. We also note that SIEGY has a PEG ratio of 2.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASHTY currently has a PEG ratio of 3.13.

Another notable valuation metric for SIEGY is its P/B ratio of 2.91. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ASHTY has a P/B of 4.49.

Based on these metrics and many more, SIEGY holds a Value grade of B, while ASHTY has a Value grade of D.

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

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