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CARR vs. KLAC: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Carrier Global (CARR - Free Report) and KLA (KLAC - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Carrier Global and KLA are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CARR currently has a forward P/E ratio of 20.66, while KLAC has a forward P/E of 21.17. We also note that CARR has a PEG ratio of 2.04. 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. KLAC currently has a PEG ratio of 2.24.
Another notable valuation metric for CARR is its P/B ratio of 5.49. 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, KLAC has a P/B of 21.92.
Based on these metrics and many more, CARR holds a Value grade of B, while KLAC has a Value grade of C.
Both CARR and KLAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CARR is the superior value option right now.
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CARR vs. KLAC: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Carrier Global (CARR - Free Report) and KLA (KLAC - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Carrier Global and KLA are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CARR currently has a forward P/E ratio of 20.66, while KLAC has a forward P/E of 21.17. We also note that CARR has a PEG ratio of 2.04. 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. KLAC currently has a PEG ratio of 2.24.
Another notable valuation metric for CARR is its P/B ratio of 5.49. 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, KLAC has a P/B of 21.92.
Based on these metrics and many more, CARR holds a Value grade of B, while KLAC has a Value grade of C.
Both CARR and KLAC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CARR is the superior value option right now.