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QRHC or SRCL: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Waste Removal Services sector have probably already heard of Quest Resource (QRHC - Free Report) and Stericycle (SRCL - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Quest Resource and Stericycle are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QRHC 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.

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.

QRHC currently has a forward P/E ratio of 24.13, while SRCL has a forward P/E of 29.88. We also note that QRHC has a PEG ratio of 1.61. 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. SRCL currently has a PEG ratio of 4.58.

Another notable valuation metric for QRHC is its P/B ratio of 0.47. 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, SRCL has a P/B of 2.55.

Based on these metrics and many more, QRHC holds a Value grade of A, while SRCL has a Value grade of C.

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


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Stericycle, Inc. (SRCL) - free report >>

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