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CECO or CWST: Which Is the Better Value Stock Right Now?
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Investors interested in Pollution Control stocks are likely familiar with CECO Environmental (CECO - Free Report) and Casella (CWST - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both CECO Environmental and Casella are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CECO currently has a forward P/E ratio of 16.91, while CWST has a forward P/E of 73.06. We also note that CECO has a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CWST currently has a PEG ratio of 3.46.
Another notable valuation metric for CECO is its P/B ratio of 2.06. 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, CWST has a P/B of 8.68.
These are just a few of the metrics contributing to CECO's Value grade of B and CWST's Value grade of D.
Both CECO and CWST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CECO is the superior value option right now.
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CECO or CWST: Which Is the Better Value Stock Right Now?
Investors interested in Pollution Control stocks are likely familiar with CECO Environmental (CECO - Free Report) and Casella (CWST - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both CECO Environmental and Casella are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CECO currently has a forward P/E ratio of 16.91, while CWST has a forward P/E of 73.06. We also note that CECO has a PEG ratio of 1.13. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CWST currently has a PEG ratio of 3.46.
Another notable valuation metric for CECO is its P/B ratio of 2.06. 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, CWST has a P/B of 8.68.
These are just a few of the metrics contributing to CECO's Value grade of B and CWST's Value grade of D.
Both CECO and CWST are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CECO is the superior value option right now.