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ST vs. WTS: Which Stock Is the Better Value Option?
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Investors with an interest in Instruments - Control stocks have likely encountered both Sensata (ST - Free Report) and Watts Water (WTS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Sensata and Watts Water are holding a Zacks Rank of # 2 (Buy). 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 just one factor that value investors are interested in.
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 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.
ST currently has a forward P/E ratio of 16.66, while WTS has a forward P/E of 30.24. We also note that ST has a PEG ratio of 1.51. 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. WTS currently has a PEG ratio of 3.78.
Another notable valuation metric for ST is its P/B ratio of 3.25. 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, WTS has a P/B of 4.48.
Based on these metrics and many more, ST holds a Value grade of B, while WTS has a Value grade of D.
Both ST and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ST is the superior value option right now.
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ST vs. WTS: Which Stock Is the Better Value Option?
Investors with an interest in Instruments - Control stocks have likely encountered both Sensata (ST - Free Report) and Watts Water (WTS - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Sensata and Watts Water are holding a Zacks Rank of # 2 (Buy). 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 just one factor that value investors are interested in.
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 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.
ST currently has a forward P/E ratio of 16.66, while WTS has a forward P/E of 30.24. We also note that ST has a PEG ratio of 1.51. 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. WTS currently has a PEG ratio of 3.78.
Another notable valuation metric for ST is its P/B ratio of 3.25. 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, WTS has a P/B of 4.48.
Based on these metrics and many more, ST holds a Value grade of B, while WTS has a Value grade of D.
Both ST and WTS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ST is the superior value option right now.