We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MNRO or MCW: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Consumer Services - Miscellaneous stocks are likely familiar with Monro Muffler Brake (MNRO - Free Report) and Mister Car Wash (MCW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Monro Muffler Brake has a Zacks Rank of #2 (Buy), while Mister Car Wash 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 MNRO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
MNRO currently has a forward P/E ratio of 27, while MCW has a forward P/E of 27.99. We also note that MNRO has a PEG ratio of 1.80. 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. MCW currently has a PEG ratio of 2.07.
Another notable valuation metric for MNRO is its P/B ratio of 2.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MCW has a P/B of 3.37.
Based on these metrics and many more, MNRO holds a Value grade of B, while MCW has a Value grade of C.
MNRO stands above MCW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MNRO is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MNRO or MCW: Which Is the Better Value Stock Right Now?
Investors interested in Consumer Services - Miscellaneous stocks are likely familiar with Monro Muffler Brake (MNRO - Free Report) and Mister Car Wash (MCW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Monro Muffler Brake has a Zacks Rank of #2 (Buy), while Mister Car Wash 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 MNRO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
MNRO currently has a forward P/E ratio of 27, while MCW has a forward P/E of 27.99. We also note that MNRO has a PEG ratio of 1.80. 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. MCW currently has a PEG ratio of 2.07.
Another notable valuation metric for MNRO is its P/B ratio of 2.20. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MCW has a P/B of 3.37.
Based on these metrics and many more, MNRO holds a Value grade of B, while MCW has a Value grade of C.
MNRO stands above MCW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MNRO is the superior value option right now.