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PTVE vs. MCW: Which Stock Is the Better Value Option?
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Investors interested in Consumer Services - Miscellaneous stocks are likely familiar with Pactiv Evergreen Inc. (PTVE - 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, Pactiv Evergreen Inc. has a Zacks Rank of #1 (Strong Buy), while Mister Car Wash has a Zacks Rank of #4 (Sell). This means that PTVE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
PTVE currently has a forward P/E ratio of 11.75, while MCW has a forward P/E of 23.14. We also note that PTVE has a PEG ratio of 0.84. 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 PTVE is its P/B ratio of 1.75. 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, MCW has a P/B of 2.63.
These metrics, and several others, help PTVE earn a Value grade of A, while MCW has been given a Value grade of D.
PTVE 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 PTVE is likely the superior value option right now.
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PTVE vs. MCW: Which Stock Is the Better Value Option?
Investors interested in Consumer Services - Miscellaneous stocks are likely familiar with Pactiv Evergreen Inc. (PTVE - 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, Pactiv Evergreen Inc. has a Zacks Rank of #1 (Strong Buy), while Mister Car Wash has a Zacks Rank of #4 (Sell). This means that PTVE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
PTVE currently has a forward P/E ratio of 11.75, while MCW has a forward P/E of 23.14. We also note that PTVE has a PEG ratio of 0.84. 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 PTVE is its P/B ratio of 1.75. 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, MCW has a P/B of 2.63.
These metrics, and several others, help PTVE earn a Value grade of A, while MCW has been given a Value grade of D.
PTVE 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 PTVE is likely the superior value option right now.