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SIEGY vs. ASHTY: Which Stock Is the Better Value Option?

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Investors interested in Industrial Services stocks are likely familiar with Siemens AG (SIEGY - Free Report) and Ashtead Group PLC (ASHTY - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Siemens AG has a Zacks Rank of #2 (Buy), while Ashtead Group PLC has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIEGY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SIEGY currently has a forward P/E ratio of 16.80, while ASHTY has a forward P/E of 18.16. We also note that SIEGY has a PEG ratio of 0.48. 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. ASHTY currently has a PEG ratio of 0.95.

Another notable valuation metric for SIEGY is its P/B ratio of 2.19. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ASHTY has a P/B of 5.48.

These metrics, and several others, help SIEGY earn a Value grade of B, while ASHTY has been given a Value grade of C.

SIEGY 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 SIEGY is likely the superior value option right now.


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