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ABM vs. TRI: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Business - Services stocks have likely encountered both ABM Industries (ABM - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, both ABM Industries and Thomson Reuters are sporting a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
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.
ABM currently has a forward P/E ratio of 12.36, while TRI has a forward P/E of 21.35. We also note that ABM has a PEG ratio of 1.38. 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. TRI currently has a PEG ratio of 1.83.
Another notable valuation metric for ABM is its P/B ratio of 1.61. 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, TRI has a P/B of 3.75.
Based on these metrics and many more, ABM holds a Value grade of A, while TRI has a Value grade of C.
Both ABM and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ABM is the superior value option right now.
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ABM vs. TRI: Which Stock Should Value Investors Buy Now?
Investors with an interest in Business - Services stocks have likely encountered both ABM Industries (ABM - Free Report) and Thomson Reuters (TRI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Right now, both ABM Industries and Thomson Reuters are sporting a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
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.
ABM currently has a forward P/E ratio of 12.36, while TRI has a forward P/E of 21.35. We also note that ABM has a PEG ratio of 1.38. 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. TRI currently has a PEG ratio of 1.83.
Another notable valuation metric for ABM is its P/B ratio of 1.61. 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, TRI has a P/B of 3.75.
Based on these metrics and many more, ABM holds a Value grade of A, while TRI has a Value grade of C.
Both ABM and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ABM is the superior value option right now.