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STRL vs. ACM: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Aecom Technology (ACM - 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.
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.
Sterling Infrastructure and Aecom Technology are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than ACM has recently. However, value investors will care about much more than just this.
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.
STRL currently has a forward P/E ratio of 9.68, while ACM has a forward P/E of 19.96. We also note that STRL has a PEG ratio of 0.54. 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. ACM currently has a PEG ratio of 1.45.
Another notable valuation metric for STRL is its P/B ratio of 2.06. 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, ACM has a P/B of 4.04.
These metrics, and several others, help STRL earn a Value grade of A, while ACM has been given a Value grade of C.
STRL stands above ACM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRL is the superior value option right now.
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STRL vs. ACM: Which Stock Is the Better Value Option?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL - Free Report) or Aecom Technology (ACM - 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.
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.
Sterling Infrastructure and Aecom Technology are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that STRL likely has seen a stronger improvement to its earnings outlook than ACM has recently. However, value investors will care about much more than just this.
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.
STRL currently has a forward P/E ratio of 9.68, while ACM has a forward P/E of 19.96. We also note that STRL has a PEG ratio of 0.54. 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. ACM currently has a PEG ratio of 1.45.
Another notable valuation metric for STRL is its P/B ratio of 2.06. 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, ACM has a P/B of 4.04.
These metrics, and several others, help STRL earn a Value grade of A, while ACM has been given a Value grade of C.
STRL stands above ACM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STRL is the superior value option right now.