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GRC or TRMB: Which Is the Better Value Stock Right Now?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Gorman-Rupp (GRC - Free Report) and Trimble Navigation (TRMB - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Gorman-Rupp has a Zacks Rank of #2 (Buy), while Trimble Navigation has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GRC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GRC currently has a forward P/E ratio of 18.43, while TRMB has a forward P/E of 24.71. We also note that GRC has a PEG ratio of 1.42. 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. TRMB currently has a PEG ratio of 2.47.
Another notable valuation metric for GRC is its P/B ratio of 2.52. 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, TRMB has a P/B of 3.15.
These are just a few of the metrics contributing to GRC's Value grade of B and TRMB's Value grade of D.
GRC stands above TRMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GRC is the superior value option right now.
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GRC or TRMB: Which Is the Better Value Stock Right Now?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Gorman-Rupp (GRC - Free Report) and Trimble Navigation (TRMB - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Gorman-Rupp has a Zacks Rank of #2 (Buy), while Trimble Navigation has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GRC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GRC currently has a forward P/E ratio of 18.43, while TRMB has a forward P/E of 24.71. We also note that GRC has a PEG ratio of 1.42. 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. TRMB currently has a PEG ratio of 2.47.
Another notable valuation metric for GRC is its P/B ratio of 2.52. 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, TRMB has a P/B of 3.15.
These are just a few of the metrics contributing to GRC's Value grade of B and TRMB's Value grade of D.
GRC stands above TRMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GRC is the superior value option right now.