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AER vs. WAB: Which Stock Is the Better Value Option?
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Investors with an interest in Transportation - Equipment and Leasing stocks have likely encountered both AerCap (AER - Free Report) and Westinghouse Air Brake Technologies (WAB - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, AerCap has a Zacks Rank of #1 (Strong Buy), while Westinghouse Air Brake Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AER likely has seen a stronger improvement to its earnings outlook than WAB has recently. However, value investors will care about much more than just this.
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.
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.
AER currently has a forward P/E ratio of 7.90, while WAB has a forward P/E of 27.15. We also note that AER has a PEG ratio of 0.60. 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. WAB currently has a PEG ratio of 2.00.
Another notable valuation metric for AER is its P/B ratio of 1.36. 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, WAB has a P/B of 4.43.
These metrics, and several others, help AER earn a Value grade of A, while WAB has been given a Value grade of D.
AER sticks out from WAB in both our Zacks Rank and Style Scores models, so value investors will likely feel that AER is the better option right now.
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AER vs. WAB: Which Stock Is the Better Value Option?
Investors with an interest in Transportation - Equipment and Leasing stocks have likely encountered both AerCap (AER - Free Report) and Westinghouse Air Brake Technologies (WAB - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, AerCap has a Zacks Rank of #1 (Strong Buy), while Westinghouse Air Brake Technologies has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that AER likely has seen a stronger improvement to its earnings outlook than WAB has recently. However, value investors will care about much more than just this.
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.
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.
AER currently has a forward P/E ratio of 7.90, while WAB has a forward P/E of 27.15. We also note that AER has a PEG ratio of 0.60. 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. WAB currently has a PEG ratio of 2.00.
Another notable valuation metric for AER is its P/B ratio of 1.36. 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, WAB has a P/B of 4.43.
These metrics, and several others, help AER earn a Value grade of A, while WAB has been given a Value grade of D.
AER sticks out from WAB in both our Zacks Rank and Style Scores models, so value investors will likely feel that AER is the better option right now.