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VEOEY or WM: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Waste Removal Services sector might want to consider either Veolia Environnement SA (VEOEY - Free Report) or Waste Management (WM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Veolia Environnement SA has a Zacks Rank of #2 (Buy), while Waste Management has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VEOEY likely has seen a stronger improvement to its earnings outlook than WM has recently. But this is just one factor that value investors are interested in.

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.

VEOEY currently has a forward P/E ratio of 14.52, while WM has a forward P/E of 26.72. We also note that VEOEY has a PEG ratio of 1.46. 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. WM currently has a PEG ratio of 2.28.

Another notable valuation metric for VEOEY is its P/B ratio of 2.03. 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, WM has a P/B of 8.73.

Based on these metrics and many more, VEOEY holds a Value grade of A, while WM has a Value grade of C.

VEOEY stands above WM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VEOEY is the superior value option right now.

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