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TRTN vs. WAB: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Transportation - Equipment and Leasing sector have probably already heard of Triton International and Westinghouse Air Brake Technologies (WAB - 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.
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 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.
Right now, both Triton International and Westinghouse Air Brake Technologies are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TRTN currently has a forward P/E ratio of 8.29, while WAB has a forward P/E of 18.26. We also note that TRTN has a PEG ratio of 0.83. 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. WAB currently has a PEG ratio of 6.23.
Another notable valuation metric for TRTN is its P/B ratio of 1.16. 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, WAB has a P/B of 1.26.
Based on these metrics and many more, TRTN holds a Value grade of A, while WAB has a Value grade of C.
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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TRTN vs. WAB: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Equipment and Leasing sector have probably already heard of Triton International and Westinghouse Air Brake Technologies (WAB - 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.
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 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.
Right now, both Triton International and Westinghouse Air Brake Technologies are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TRTN currently has a forward P/E ratio of 8.29, while WAB has a forward P/E of 18.26. We also note that TRTN has a PEG ratio of 0.83. 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. WAB currently has a PEG ratio of 6.23.
Another notable valuation metric for TRTN is its P/B ratio of 1.16. 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, WAB has a P/B of 1.26.
Based on these metrics and many more, TRTN holds a Value grade of A, while WAB has a Value grade of C.
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.