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JEC or CHYCY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Engineering - R and D Services stocks have likely encountered both Jacobs Engineering and Chiyoda Corp. Unsponsored ADR (CHYCY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Engineering and Chiyoda Corp. Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold) respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JEC is likely seeing its earnings outlook improve. But this is just one factor that value investors are interested in.

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 popular P/E ratio, as well as the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JEC currently has a forward P/E ratio of 15.23, while CHYCY has a forward P/E of 23.68. We also note that JEC has a PEG ratio of 1.06. 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. CHYCY currently has a PEG ratio of 2.37.

Another notable valuation metric for JEC is its P/B ratio of 1.52. 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, CHYCY has a P/B of 1.58.

Based on these metrics and many more, JEC holds a Value grade of A, while CHYCY has a Value grade of F.

JEC 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 JEC is likely the superior value option right now.


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