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SCSC or SITE: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Industrial Services sector might want to consider either ScanSource (SCSC - Free Report) or SiteOne Landscape (SITE - 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.
ScanSource and SiteOne Landscape are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCSC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
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.
SCSC currently has a forward P/E ratio of 10.99, while SITE has a forward P/E of 40.85. We also note that SCSC has a PEG ratio of 0.73. 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. SITE currently has a PEG ratio of 2.43.
Another notable valuation metric for SCSC is its P/B ratio of 1.09. 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, SITE has a P/B of 3.88.
These are just a few of the metrics contributing to SCSC's Value grade of A and SITE's Value grade of C.
SCSC stands above SITE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SCSC is the superior value option right now.
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SCSC or SITE: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Industrial Services sector might want to consider either ScanSource (SCSC - Free Report) or SiteOne Landscape (SITE - 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.
ScanSource and SiteOne Landscape are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SCSC is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
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.
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.
SCSC currently has a forward P/E ratio of 10.99, while SITE has a forward P/E of 40.85. We also note that SCSC has a PEG ratio of 0.73. 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. SITE currently has a PEG ratio of 2.43.
Another notable valuation metric for SCSC is its P/B ratio of 1.09. 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, SITE has a P/B of 3.88.
These are just a few of the metrics contributing to SCSC's Value grade of A and SITE's Value grade of C.
SCSC stands above SITE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SCSC is the superior value option right now.