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SMGZY or TRI: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, Smiths Group PLC has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #3 (Hold). This means that SMGZY'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 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.
SMGZY currently has a forward P/E ratio of 16.71, while TRI has a forward P/E of 46.41. We also note that SMGZY has a PEG ratio of 1.70. 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. TRI currently has a PEG ratio of 6.50.
Another notable valuation metric for SMGZY is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TRI has a P/B of 6.97.
These metrics, and several others, help SMGZY earn a Value grade of B, while TRI has been given a Value grade of D.
SMGZY sticks out from TRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that SMGZY is the better option right now.
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SMGZY or TRI: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Technology Services sector have probably already heard of Smiths Group PLC (SMGZY - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 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, Smiths Group PLC has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #3 (Hold). This means that SMGZY'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 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.
SMGZY currently has a forward P/E ratio of 16.71, while TRI has a forward P/E of 46.41. We also note that SMGZY has a PEG ratio of 1.70. 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. TRI currently has a PEG ratio of 6.50.
Another notable valuation metric for SMGZY is its P/B ratio of 2.65. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TRI has a P/B of 6.97.
These metrics, and several others, help SMGZY earn a Value grade of B, while TRI has been given a Value grade of D.
SMGZY sticks out from TRI in both our Zacks Rank and Style Scores models, so value investors will likely feel that SMGZY is the better option right now.