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HSC or SMGZY: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Technology Services sector might want to consider either Harsco or Smiths Group PLC (SMGZY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Harsco is sporting a Zacks Rank of #2 (Buy), while Smiths Group PLC has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HSC has an improving earnings outlook. But this is only part of the picture 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.
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.
HSC currently has a forward P/E ratio of 19.70, while SMGZY has a forward P/E of 22.57. We also note that HSC has a PEG ratio of 1.97. 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. SMGZY currently has a PEG ratio of 4.82.
Another notable valuation metric for HSC is its P/B ratio of 1.94. 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, SMGZY has a P/B of 2.59.
Based on these metrics and many more, HSC holds a Value grade of B, while SMGZY has a Value grade of C.
HSC stands above SMGZY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HSC is the superior value option right now.
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HSC or SMGZY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Technology Services sector might want to consider either Harsco or Smiths Group PLC (SMGZY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Harsco is sporting a Zacks Rank of #2 (Buy), while Smiths Group PLC has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HSC has an improving earnings outlook. But this is only part of the picture 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.
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.
HSC currently has a forward P/E ratio of 19.70, while SMGZY has a forward P/E of 22.57. We also note that HSC has a PEG ratio of 1.97. 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. SMGZY currently has a PEG ratio of 4.82.
Another notable valuation metric for HSC is its P/B ratio of 1.94. 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, SMGZY has a P/B of 2.59.
Based on these metrics and many more, HSC holds a Value grade of B, while SMGZY has a Value grade of C.
HSC stands above SMGZY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HSC is the superior value option right now.