We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BCKIY vs. STRL: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors with an interest in Engineering - R and D Services stocks have likely encountered both Babcock International Group PLC (BCKIY - Free Report) and Sterling Infrastructure (STRL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Babcock International Group PLC is sporting a Zacks Rank of #2 (Buy), while Sterling Infrastructure has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCKIY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
BCKIY currently has a forward P/E ratio of 21.31, while STRL has a forward P/E of 41.06. We also note that BCKIY has a PEG ratio of 1.57. 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. STRL currently has a PEG ratio of 2.74.
Another notable valuation metric for BCKIY is its P/B ratio of 10.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, STRL has a P/B of 13.11.
Based on these metrics and many more, BCKIY holds a Value grade of B, while STRL has a Value grade of D.
BCKIY stands above STRL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCKIY is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BCKIY vs. STRL: Which Stock Is the Better Value Option?
Investors with an interest in Engineering - R and D Services stocks have likely encountered both Babcock International Group PLC (BCKIY - Free Report) and Sterling Infrastructure (STRL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Babcock International Group PLC is sporting a Zacks Rank of #2 (Buy), while Sterling Infrastructure has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that BCKIY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
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.
BCKIY currently has a forward P/E ratio of 21.31, while STRL has a forward P/E of 41.06. We also note that BCKIY has a PEG ratio of 1.57. 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. STRL currently has a PEG ratio of 2.74.
Another notable valuation metric for BCKIY is its P/B ratio of 10.26. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, STRL has a P/B of 13.11.
Based on these metrics and many more, BCKIY holds a Value grade of B, while STRL has a Value grade of D.
BCKIY stands above STRL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCKIY is the superior value option right now.