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BRRAY vs. DHR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Diversified Operations sector have probably already heard of Barloworld Ltd. (BRRAY - Free Report) and Danaher (DHR - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Barloworld Ltd. has a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BRRAY likely has seen a stronger improvement to its earnings outlook than DHR has recently. But this is just one piece of the puzzle 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 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.
BRRAY currently has a forward P/E ratio of 7.71, while DHR has a forward P/E of 26.38. We also note that BRRAY has a PEG ratio of 0.79. 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. DHR currently has a PEG ratio of 1.29.
Another notable valuation metric for BRRAY is its P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHR has a P/B of 4.68.
These are just a few of the metrics contributing to BRRAY's Value grade of B and DHR's Value grade of D.
BRRAY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BRRAY is the superior value option right now.
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BRRAY vs. DHR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Barloworld Ltd. (BRRAY - Free Report) and Danaher (DHR - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Barloworld Ltd. has a Zacks Rank of #2 (Buy), while Danaher has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BRRAY likely has seen a stronger improvement to its earnings outlook than DHR has recently. But this is just one piece of the puzzle 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 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.
BRRAY currently has a forward P/E ratio of 7.71, while DHR has a forward P/E of 26.38. We also note that BRRAY has a PEG ratio of 0.79. 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. DHR currently has a PEG ratio of 1.29.
Another notable valuation metric for BRRAY is its P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DHR has a P/B of 4.68.
These are just a few of the metrics contributing to BRRAY's Value grade of B and DHR's Value grade of D.
BRRAY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BRRAY is the superior value option right now.