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

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Investors with an interest in Diversified Operations stocks have likely encountered both 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Marubeni Corp. has a Zacks Rank of #1 (Strong Buy), while Carlisle has a Zacks Rank of #2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MARUY is likely seeing its earnings outlook improve to a greater extent. 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.

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.

MARUY currently has a forward P/E ratio of 4.75, while CSL has a forward P/E of 16.74. We also note that MARUY has a PEG ratio of 0.23. 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 0.98.

Another notable valuation metric for MARUY is its P/B ratio of 1.08. 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, CSL has a P/B of 4.78.

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

MARUY stands above CSL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MARUY is the superior value option right now.


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