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MARUY or ITT: Which Is the Better Value Stock Right Now?

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Investors interested in Diversified Operations stocks are likely familiar with Marubeni Corp. (MARUY - Free Report) and ITT (ITT - 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 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.

Marubeni Corp. and ITT are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

MARUY currently has a forward P/E ratio of 4.97, while ITT has a forward P/E of 25.09. We also note that MARUY has a PEG ratio of 0.36. 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. ITT currently has a PEG ratio of 1.73.

Another notable valuation metric for MARUY is its P/B ratio of 0.92. 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, ITT has a P/B of 4.08.

These are just a few of the metrics contributing to MARUY's Value grade of A and ITT's Value grade of C.

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


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