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SIEGY vs. BOOM: Which Stock Should Value Investors Buy Now?

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Investors interested in Industrial Services stocks are likely familiar with Siemens AG (SIEGY - Free Report) and DMC Global (BOOM - 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.

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.

Siemens AG has a Zacks Rank of #2 (Buy), while DMC Global has a Zacks Rank of #3 (Hold) right now. 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. But this is just one piece of the puzzle 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SIEGY currently has a forward P/E ratio of 20.25, while BOOM has a forward P/E of 87.90. We also note that SIEGY has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BOOM currently has a PEG ratio of 4.40.

Another notable valuation metric for SIEGY is its P/B ratio of 2.87. 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, BOOM has a P/B of 5.03.

These are just a few of the metrics contributing to SIEGY's Value grade of B and BOOM's Value grade of D.

SIEGY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SIEGY is likely the superior value option right now.


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