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PTVE or MCW: Which Is the Better Value Stock Right Now?

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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.

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.

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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

PTVE currently has a forward P/E ratio of 12.24, while MCW has a forward P/E of 22.45. We also note that PTVE has a PEG ratio of 0.88. 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. MCW currently has a PEG ratio of 2.

Another notable valuation metric for PTVE is its P/B ratio of 1.82. 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 2.55.

These metrics, and several others, help PTVE earn a Value grade of A, while MCW has been given a Value grade of D.

PTVE sticks out from MCW in both our Zacks Rank and Style Scores models, so value investors will likely feel that PTVE is the better option right now.


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Pactiv Evergreen Inc. (PTVE) - free report >>

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