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GTLS or RBC: Which Is the Better Value Stock Right Now?

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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Chart Industries (GTLS - Free Report) and RBC Bearings (RBC - 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.

Chart Industries and RBC Bearings are both sporting a Zacks Rank of # 2 (Buy) right now. 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

GTLS currently has a forward P/E ratio of 22, while RBC has a forward P/E of 26.62. We also note that GTLS has a PEG ratio of 0.57. 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. RBC currently has a PEG ratio of 4.54.

Another notable valuation metric for GTLS is its P/B ratio of 1.74. 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, RBC has a P/B of 2.56.

These metrics, and several others, help GTLS earn a Value grade of B, while RBC has been given a Value grade of D.

Both GTLS and RBC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GTLS is the superior value option right now.


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RBC Bearings Incorporated (RBC) - free report >>

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