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HDSN or ASHTY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Industrial Services stocks have likely encountered both Hudson Technologies (HDSN - Free Report) and Ashtead Group PLC (ASHTY - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Hudson Technologies has a Zacks Rank of #2 (Buy), while Ashtead Group PLC has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HDSN likely has seen a stronger improvement to its earnings outlook than ASHTY has recently. 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.

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.

HDSN currently has a forward P/E ratio of 6.98, while ASHTY has a forward P/E of 14.48. We also note that HDSN has a PEG ratio of 0.23. 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. ASHTY currently has a PEG ratio of 0.76.

Another notable valuation metric for HDSN is its P/B ratio of 2.18. 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, ASHTY has a P/B of 4.89.

These are just a few of the metrics contributing to HDSN's Value grade of A and ASHTY's Value grade of C.

HDSN stands above ASHTY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HDSN is the superior value option right now.

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