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QRHC or WCN: Which Is the Better Value Stock Right Now?

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Investors interested in Waste Removal Services stocks are likely familiar with Quest Resource (QRHC - Free Report) and Waste Connections (WCN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Quest Resource has a Zacks Rank of #2 (Buy), while Waste Connections has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that QRHC likely has seen a stronger improvement to its earnings outlook than WCN has recently. But this is just one piece of the puzzle 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

QRHC currently has a forward P/E ratio of 35.44, while WCN has a forward P/E of 40.58. We also note that QRHC has a PEG ratio of 2.36. 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. WCN currently has a PEG ratio of 3.04.

Another notable valuation metric for QRHC is its P/B ratio of 1.49. 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, WCN has a P/B of 4.85.

These are just a few of the metrics contributing to QRHC's Value grade of B and WCN's Value grade of C.

QRHC has seen stronger estimate revision activity and sports more attractive valuation metrics than WCN, so it seems like value investors will conclude that QRHC is the superior option right now.


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Quest Resource Holding Corporation. (QRHC) - free report >>

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