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URI or MAS: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either United Rentals (URI - Free Report) or Masco (MAS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 United Rentals and Masco are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
URI currently has a forward P/E ratio of 15.76, while MAS has a forward P/E of 17.13. We also note that URI has a PEG ratio of 1.17. 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. MAS currently has a PEG ratio of 2.06.
Another notable valuation metric for URI is its P/B ratio of 5.05. 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, MAS has a P/B of 72.10.
Based on these metrics and many more, URI holds a Value grade of B, while MAS has a Value grade of C.
Both URI and MAS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that URI is the superior value option right now.
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URI or MAS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Building Products - Miscellaneous sector might want to consider either United Rentals (URI - Free Report) or Masco (MAS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 United Rentals and Masco are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
URI currently has a forward P/E ratio of 15.76, while MAS has a forward P/E of 17.13. We also note that URI has a PEG ratio of 1.17. 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. MAS currently has a PEG ratio of 2.06.
Another notable valuation metric for URI is its P/B ratio of 5.05. 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, MAS has a P/B of 72.10.
Based on these metrics and many more, URI holds a Value grade of B, while MAS has a Value grade of C.
Both URI and MAS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that URI is the superior value option right now.