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HI vs. GWW: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Industrial Services stocks have likely encountered both Hillenbrand (HI - Free Report) and W.W. Grainger (GWW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Currently, Hillenbrand has a Zacks Rank of #2 (Buy), while W.W. Grainger has a Zacks Rank of #3 (Hold). This means that HI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.
HI currently has a forward P/E ratio of 10.55, while GWW has a forward P/E of 20.01. We also note that HI has a PEG ratio of 0.88. 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. GWW currently has a PEG ratio of 1.54.
Another notable valuation metric for HI is its P/B ratio of 2.48. 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, GWW has a P/B of 11.50.
These metrics, and several others, help HI earn a Value grade of A, while GWW has been given a Value grade of C.
HI sticks out from GWW in both our Zacks Rank and Style Scores models, so value investors will likely feel that HI is the better option right now.
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HI vs. GWW: Which Stock Should Value Investors Buy Now?
Investors with an interest in Industrial Services stocks have likely encountered both Hillenbrand (HI - Free Report) and W.W. Grainger (GWW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Currently, Hillenbrand has a Zacks Rank of #2 (Buy), while W.W. Grainger has a Zacks Rank of #3 (Hold). This means that HI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.
HI currently has a forward P/E ratio of 10.55, while GWW has a forward P/E of 20.01. We also note that HI has a PEG ratio of 0.88. 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. GWW currently has a PEG ratio of 1.54.
Another notable valuation metric for HI is its P/B ratio of 2.48. 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, GWW has a P/B of 11.50.
These metrics, and several others, help HI earn a Value grade of A, while GWW has been given a Value grade of C.
HI sticks out from GWW in both our Zacks Rank and Style Scores models, so value investors will likely feel that HI is the better option right now.