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PTVE vs. MCW: Which Stock Is the Better Value Option?

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Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both Pactiv Evergreen Inc. (PTVE - Free Report) and Mister Car Wash (MCW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.

Pactiv Evergreen Inc. has a Zacks Rank of #1 (Strong Buy), while Mister Car Wash has a Zacks Rank of #3 (Hold) right now. 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 just one factor that value investors are interested in.

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.

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 13.80, while MCW has a forward P/E of 21.25. We also note that PTVE has a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MCW currently has a PEG ratio of 1.90.

Another notable valuation metric for PTVE is its P/B ratio of 2.05. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MCW has a P/B of 2.36.

Based on these metrics and many more, PTVE holds a Value grade of A, while MCW has a Value grade of C.

PTVE has seen stronger estimate revision activity and sports more attractive valuation metrics than MCW, so it seems like value investors will conclude that PTVE is the superior option right now.


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

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