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MTUS vs. NWPX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Steel - Speciality sector have probably already heard of Metallus (MTUS - Free Report) and NWPX Infrastructure (NWPX - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Metallus is sporting a Zacks Rank of #2 (Buy), while NWPX 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 MTUS has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

MTUS currently has a forward P/E ratio of 19.66, while NWPX has a forward P/E of 22.53. We also note that MTUS has a PEG ratio of 1.31. 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. NWPX currently has a PEG ratio of 2.05.

Another notable valuation metric for MTUS is its P/B ratio of 1.17. 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, NWPX has a P/B of 2.65.

Based on these metrics and many more, MTUS holds a Value grade of B, while NWPX has a Value grade of C.

MTUS sticks out from NWPX in both our Zacks Rank and Style Scores models, so value investors will likely feel that MTUS is the better option right now.

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