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AER vs. WAB: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Transportation - Equipment and Leasing sector might want to consider either AerCap (AER - Free Report) or Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both AerCap and Westinghouse Air Brake Technologies are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
AER currently has a forward P/E ratio of 9.53, while WAB has a forward P/E of 22.56. We also note that AER has a PEG ratio of 0.74. 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. WAB currently has a PEG ratio of 1.55.
Another notable valuation metric for AER is its P/B ratio of 1.48. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WAB has a P/B of 3.52.
These metrics, and several others, help AER earn a Value grade of A, while WAB has been given a Value grade of D.
Both AER and WAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AER is the superior value option right now.
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AER vs. WAB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Transportation - Equipment and Leasing sector might want to consider either AerCap (AER - Free Report) or Westinghouse Air Brake Technologies (WAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both AerCap and Westinghouse Air Brake Technologies are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
AER currently has a forward P/E ratio of 9.53, while WAB has a forward P/E of 22.56. We also note that AER has a PEG ratio of 0.74. 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. WAB currently has a PEG ratio of 1.55.
Another notable valuation metric for AER is its P/B ratio of 1.48. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WAB has a P/B of 3.52.
These metrics, and several others, help AER earn a Value grade of A, while WAB has been given a Value grade of D.
Both AER and WAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AER is the superior value option right now.