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PNR or ZWS: 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 Pentair plc (PNR - Free Report) or Zurn Water (ZWS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Pentair plc is sporting a Zacks Rank of #2 (Buy), while Zurn Water 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 PNR has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PNR currently has a forward P/E ratio of 14.26, while ZWS has a forward P/E of 28.58. We also note that PNR has a PEG ratio of 1.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ZWS currently has a PEG ratio of 1.97.

Another notable valuation metric for PNR is its P/B ratio of 3.24. 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, ZWS has a P/B of 5.18.

These are just a few of the metrics contributing to PNR's Value grade of B and ZWS's Value grade of C.

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

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