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ST vs. TRNS: Which Stock Is the Better Value Option?
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Investors interested in Instruments - Control stocks are likely familiar with Sensata (ST - Free Report) and Transcat, Inc. (TRNS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Sensata and Transcat, Inc. are holding 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. However, value investors will care about much more than just this.
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.
ST currently has a forward P/E ratio of 16.41, while TRNS has a forward P/E of 37.60. We also note that ST has a PEG ratio of 1.49. 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. TRNS currently has a PEG ratio of 4.70.
Another notable valuation metric for ST is its P/B ratio of 3.18. 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, TRNS has a P/B of 6.31.
Based on these metrics and many more, ST holds a Value grade of B, while TRNS has a Value grade of D.
Both ST and TRNS 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. TRNS: Which Stock Is the Better Value Option?
Investors interested in Instruments - Control stocks are likely familiar with Sensata (ST - Free Report) and Transcat, Inc. (TRNS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Sensata and Transcat, Inc. are holding 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. However, value investors will care about much more than just this.
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.
ST currently has a forward P/E ratio of 16.41, while TRNS has a forward P/E of 37.60. We also note that ST has a PEG ratio of 1.49. 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. TRNS currently has a PEG ratio of 4.70.
Another notable valuation metric for ST is its P/B ratio of 3.18. 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, TRNS has a P/B of 6.31.
Based on these metrics and many more, ST holds a Value grade of B, while TRNS has a Value grade of D.
Both ST and TRNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ST is the superior value option right now.