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QRHC vs. SRCL: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Waste Removal Services sector have probably already heard of Quest Resource (QRHC - Free Report) and Stericycle (SRCL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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, Quest Resource has a Zacks Rank of #2 (Buy), while Stericycle has a Zacks Rank of #3 (Hold). This means that QRHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
QRHC currently has a forward P/E ratio of 16.57, while SRCL has a forward P/E of 23.71. We also note that QRHC has a PEG ratio of 1.10. 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. SRCL currently has a PEG ratio of 2.96.
Another notable valuation metric for QRHC is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SRCL has a P/B of 1.92.
Based on these metrics and many more, QRHC holds a Value grade of B, while SRCL has a Value grade of C.
QRHC stands above SRCL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QRHC is the superior value option right now.
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QRHC vs. SRCL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Waste Removal Services sector have probably already heard of Quest Resource (QRHC - Free Report) and Stericycle (SRCL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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, Quest Resource has a Zacks Rank of #2 (Buy), while Stericycle has a Zacks Rank of #3 (Hold). This means that QRHC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
QRHC currently has a forward P/E ratio of 16.57, while SRCL has a forward P/E of 23.71. We also note that QRHC has a PEG ratio of 1.10. 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. SRCL currently has a PEG ratio of 2.96.
Another notable valuation metric for QRHC is its P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SRCL has a P/B of 1.92.
Based on these metrics and many more, QRHC holds a Value grade of B, while SRCL has a Value grade of C.
QRHC stands above SRCL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QRHC is the superior value option right now.