Back to top

Image: Bigstock

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

Read MoreHide Full Article

Investors looking for stocks in the Diversified Operations sector might want to consider either Marubeni Corp. (MARUY - Free Report) or Carlisle (CSL - 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.

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.

Right now, both Marubeni Corp. and Carlisle are sporting a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.

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.

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 3.94, while CSL has a forward P/E of 15.18. We also note that MARUY has a PEG ratio of 0.16. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CSL currently has a PEG ratio of 0.89.

Another notable valuation metric for MARUY is its P/B ratio of 0.93. 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 4.67.

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

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Carlisle Companies Incorporated (CSL) - free report >>

Marubeni Corp. (MARUY) - free report >>

Published in