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J or MAS: Which Is the Better Value Stock Right Now?
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Investors interested in Building Products - Miscellaneous stocks are likely familiar with Jacobs Solutions (J - Free Report) and Masco (MAS - 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.
Jacobs Solutions and Masco are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.
J currently has a forward P/E ratio of 17.12, while MAS has a forward P/E of 18.95. We also note that J has a PEG ratio of 1.20. 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. MAS currently has a PEG ratio of 1.98.
Another notable valuation metric for J is its P/B ratio of 4.45. 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, MAS has a P/B of 601.47.
These are just a few of the metrics contributing to J's Value grade of B and MAS's Value grade of C.
Both J and MAS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that J is the superior value option right now.
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J or MAS: Which Is the Better Value Stock Right Now?
Investors interested in Building Products - Miscellaneous stocks are likely familiar with Jacobs Solutions (J - Free Report) and Masco (MAS - 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.
Jacobs Solutions and Masco are both sporting a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 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.
J currently has a forward P/E ratio of 17.12, while MAS has a forward P/E of 18.95. We also note that J has a PEG ratio of 1.20. 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. MAS currently has a PEG ratio of 1.98.
Another notable valuation metric for J is its P/B ratio of 4.45. 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, MAS has a P/B of 601.47.
These are just a few of the metrics contributing to J's Value grade of B and MAS's Value grade of C.
Both J and MAS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that J is the superior value option right now.