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SBLK vs. KEX: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Transportation - Shipping sector have probably already heard of Star Bulk Carriers (SBLK - Free Report) and Kirby (KEX - 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 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.

Star Bulk Carriers has a Zacks Rank of #1 (Strong Buy), while Kirby has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SBLK likely has seen a stronger improvement to its earnings outlook than KEX has recently. 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 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.

SBLK currently has a forward P/E ratio of 6.48, while KEX has a forward P/E of 18.46. We also note that SBLK has a PEG ratio of 0.11. 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. KEX currently has a PEG ratio of 1.17.

Another notable valuation metric for SBLK is its P/B ratio of 1.32. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, KEX has a P/B of 2.04.

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

SBLK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SBLK is likely the superior value option right now.

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