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STNG or KEX: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Transportation - Shipping sector might want to consider either Scorpio Tankers (STNG - Free Report) or Kirby (KEX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, Scorpio Tankers has a Zacks Rank of #1 (Strong Buy), while Kirby has a Zacks Rank of #3 (Hold). This means that STNG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STNG currently has a forward P/E ratio of 4.63, while KEX has a forward P/E of 33.10. We also note that STNG has a PEG ratio of 0.10. 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. KEX currently has a PEG ratio of 2.76.
Another notable valuation metric for STNG is its P/B ratio of 1.41. 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 1.42.
These metrics, and several others, help STNG earn a Value grade of B, while KEX has been given a Value grade of D.
STNG 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 STNG is likely the superior value option right now.
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STNG or KEX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Transportation - Shipping sector might want to consider either Scorpio Tankers (STNG - Free Report) or Kirby (KEX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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, Scorpio Tankers has a Zacks Rank of #1 (Strong Buy), while Kirby has a Zacks Rank of #3 (Hold). This means that STNG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
STNG currently has a forward P/E ratio of 4.63, while KEX has a forward P/E of 33.10. We also note that STNG has a PEG ratio of 0.10. 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. KEX currently has a PEG ratio of 2.76.
Another notable valuation metric for STNG is its P/B ratio of 1.41. 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 1.42.
These metrics, and several others, help STNG earn a Value grade of B, while KEX has been given a Value grade of D.
STNG 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 STNG is likely the superior value option right now.