Back to top

Image: Bigstock

MARUY vs. CSL: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Diversified Operations stocks are likely familiar with Marubeni Corp. (MARUY - Free Report) and Carlisle (CSL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 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.

Both Marubeni Corp. and Carlisle have a Zacks Rank of # 2 (Buy) right now. 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 just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

MARUY currently has a forward P/E ratio of 4.84, while CSL has a forward P/E of 25.95. We also note that MARUY has a PEG ratio of 0.35. 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. CSL currently has a PEG ratio of 1.73.

Another notable valuation metric for MARUY is its P/B ratio of 0.87. 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, CSL has a P/B of 4.91.

Based on these metrics and many more, MARUY holds a Value grade of A, while CSL has a Value grade of C.

Both MARUY and CSL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MARUY is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Carlisle Companies Incorporated (CSL) - free report >>

Marubeni Corp. (MARUY) - free report >>

Published in