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MTUS vs. NWPX: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Steel - Speciality sector might want to consider either Metallus (MTUS - Free Report) or NWPX Infrastructure (NWPX - 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 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.

Metallus has a Zacks Rank of #2 (Buy), while NWPX Infrastructure has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MTUS likely has seen a stronger improvement to its earnings outlook than NWPX has recently. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MTUS currently has a forward P/E ratio of 19.70, while NWPX has a forward P/E of 22.75. We also note that MTUS has a PEG ratio of 1.31. 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. NWPX currently has a PEG ratio of 2.07.

Another notable valuation metric for MTUS is its P/B ratio of 1.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NWPX has a P/B of 2.68.

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

MTUS has seen stronger estimate revision activity and sports more attractive valuation metrics than NWPX, so it seems like value investors will conclude that MTUS is the superior option right now.

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