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STNG vs. KEX: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Transportation - Shipping sector have probably already heard of Scorpio Tankers (STNG - Free Report) and Kirby (KEX - 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, Scorpio Tankers has a Zacks Rank of #1 (Strong Buy), while Kirby has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STNG likely has seen a stronger improvement to its earnings outlook than KEX has recently. 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 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.
STNG currently has a forward P/E ratio of 4.35, while KEX has a forward P/E of 32.39. We also note that STNG has a PEG ratio of 0.08. 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. KEX currently has a PEG ratio of 2.70.
Another notable valuation metric for STNG is its P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KEX has a P/B of 1.38.
These are just a few of the metrics contributing to STNG's Value grade of B and KEX's Value grade of D.
STNG sticks out from KEX in both our Zacks Rank and Style Scores models, so value investors will likely feel that STNG is the better option right now.
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STNG vs. KEX: Which Stock Is the Better Value Option?
Investors interested in stocks from the Transportation - Shipping sector have probably already heard of Scorpio Tankers (STNG - Free Report) and Kirby (KEX - 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, Scorpio Tankers has a Zacks Rank of #1 (Strong Buy), while Kirby has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STNG likely has seen a stronger improvement to its earnings outlook than KEX has recently. 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 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.
STNG currently has a forward P/E ratio of 4.35, while KEX has a forward P/E of 32.39. We also note that STNG has a PEG ratio of 0.08. 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. KEX currently has a PEG ratio of 2.70.
Another notable valuation metric for STNG is its P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, KEX has a P/B of 1.38.
These are just a few of the metrics contributing to STNG's Value grade of B and KEX's Value grade of D.
STNG sticks out from KEX in both our Zacks Rank and Style Scores models, so value investors will likely feel that STNG is the better option right now.