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DCI or CWST: Which Is the Better Value Stock Right Now?
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Investors interested in Pollution Control stocks are likely familiar with Donaldson (DCI - Free Report) and Casella (CWST - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Donaldson has a Zacks Rank of #2 (Buy), while Casella has a Zacks Rank of #3 (Hold). This means that DCI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
DCI currently has a forward P/E ratio of 19.03, while CWST has a forward P/E of 84.77. We also note that DCI has a PEG ratio of 1.81. 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. CWST currently has a PEG ratio of 5.98.
Another notable valuation metric for DCI is its P/B ratio of 5.69. 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, CWST has a P/B of 10.28.
Based on these metrics and many more, DCI holds a Value grade of B, while CWST has a Value grade of D.
DCI stands above CWST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DCI is the superior value option right now.
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DCI or CWST: Which Is the Better Value Stock Right Now?
Investors interested in Pollution Control stocks are likely familiar with Donaldson (DCI - Free Report) and Casella (CWST - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Donaldson has a Zacks Rank of #2 (Buy), while Casella has a Zacks Rank of #3 (Hold). This means that DCI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
DCI currently has a forward P/E ratio of 19.03, while CWST has a forward P/E of 84.77. We also note that DCI has a PEG ratio of 1.81. 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. CWST currently has a PEG ratio of 5.98.
Another notable valuation metric for DCI is its P/B ratio of 5.69. 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, CWST has a P/B of 10.28.
Based on these metrics and many more, DCI holds a Value grade of B, while CWST has a Value grade of D.
DCI stands above CWST thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DCI is the superior value option right now.