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HAYW vs. MAIR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Hayward Holdings, Inc. (HAYW - Free Report) or Madison Air Solutions Corporation (MAIR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Hayward Holdings, Inc. is sporting a Zacks Rank of #2 (Buy), while Madison Air Solutions Corporation has a Zacks Rank of #3 (Hold). This means that HAYW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

HAYW currently has a forward P/E ratio of 14.39, while MAIR has a forward P/E of 22.43. We also note that HAYW has a PEG ratio of 1.15. 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. MAIR currently has a PEG ratio of 1.18.

Another notable valuation metric for HAYW is its P/B ratio of 1.66. 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, MAIR has a P/B of 3.35.

Based on these metrics and many more, HAYW holds a Value grade of B, while MAIR has a Value grade of C.

HAYW has seen stronger estimate revision activity and sports more attractive valuation metrics than MAIR, so it seems like value investors will conclude that HAYW is the superior option right now.

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