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SRCL vs. WM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Waste Removal Services sector have probably already heard of Stericycle (SRCL - Free Report) and Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Stericycle is sporting a Zacks Rank of #2 (Buy), while Waste Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SRCL likely has seen a stronger improvement to its earnings outlook than WM has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SRCL currently has a forward P/E ratio of 22.42, while WM has a forward P/E of 30.07. We also note that SRCL has a PEG ratio of 2.80. 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. WM currently has a PEG ratio of 3.14.
Another notable valuation metric for SRCL is its P/B ratio of 1.90. 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, WM has a P/B of 12.09.
These metrics, and several others, help SRCL earn a Value grade of B, while WM has been given a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.
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SRCL vs. WM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Waste Removal Services sector have probably already heard of Stericycle (SRCL - Free Report) and Waste Management (WM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Stericycle is sporting a Zacks Rank of #2 (Buy), while Waste Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SRCL likely has seen a stronger improvement to its earnings outlook than WM has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SRCL currently has a forward P/E ratio of 22.42, while WM has a forward P/E of 30.07. We also note that SRCL has a PEG ratio of 2.80. 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. WM currently has a PEG ratio of 3.14.
Another notable valuation metric for SRCL is its P/B ratio of 1.90. 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, WM has a P/B of 12.09.
These metrics, and several others, help SRCL earn a Value grade of B, while WM has been given a Value grade of C.
SRCL sticks out from WM in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRCL is the better option right now.