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QRHC vs. SRCL: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Waste Removal Services sector might want to consider either Quest Resource (QRHC - Free Report) or Stericycle (SRCL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Quest Resource has a Zacks Rank of #2 (Buy), while Stericycle has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that QRHC likely has seen a stronger improvement to its earnings outlook than SRCL has recently. But this is just one factor that value investors are interested in.

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.

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.

QRHC currently has a forward P/E ratio of 15.36, while SRCL has a forward P/E of 22.44. We also note that QRHC has a PEG ratio of 1.02. 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. SRCL currently has a PEG ratio of 2.80.

Another notable valuation metric for QRHC 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, SRCL has a P/B of 1.78.

Based on these metrics and many more, QRHC holds a Value grade of B, while SRCL has a Value grade of C.

QRHC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that QRHC is likely the superior value option right now.


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Stericycle, Inc. (SRCL) - free report >>

Quest Resource Holding Corporation. (QRHC) - free report >>

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