TRTN vs. WAB: Which Stock Is the Better Value Option?

WAB

Investors looking for stocks in the Transportation - Equipment and Leasing sector might want to consider either Triton International or Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Triton International and Westinghouse Air Brake Technologies have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

TRTN currently has a forward P/E ratio of 8.01, while WAB has a forward P/E of 26.36. We also note that TRTN has a PEG ratio of 0.80. 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. WAB currently has a PEG ratio of 2.29.

Another notable valuation metric for TRTN is its P/B ratio of 1.20. 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, WAB has a P/B of 3.29.

These metrics, and several others, help TRTN earn a Value grade of A, while WAB has been given a Value grade of F.

Both TRTN and WAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TRTN is the superior value option right now.

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