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MARUY vs. ITT: Which Stock Should Value Investors Buy 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 presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Marubeni Corp. and ITT are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that MARUY likely has seen a stronger improvement to its earnings outlook than ITT has recently. However, value investors will care about much more than just this.

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.

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 4.85, while ITT has a forward P/E of 16.64. We also note that MARUY has a PEG ratio of 0.22. 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. ITT currently has a PEG ratio of 1.30.

Another notable valuation metric for MARUY is its P/B ratio of 1.06. 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, ITT has a P/B of 2.85.

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

MARUY sticks out from ITT in both our Zacks Rank and Style Scores models, so value investors will likely feel that MARUY is the better option right now.


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