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KBR vs. RTOXY: Which Stock Is the Better Value Option?
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Investors with an interest in Engineering - R and D Services stocks have likely encountered both KBR Inc. (KBR - Free Report) and ROTORK PLC . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
KBR Inc. and ROTORK PLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that KBR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
KBR currently has a forward P/E ratio of 12.30, while RTOXY has a forward P/E of 20.14. We also note that KBR has a PEG ratio of 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RTOXY currently has a PEG ratio of 1.75.
Another notable valuation metric for KBR is its P/B ratio of 1.57. 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, RTOXY has a P/B of 4.35.
Based on these metrics and many more, KBR holds a Value grade of A, while RTOXY has a Value grade of C.
KBR stands above RTOXY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KBR is the superior value option right now.
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KBR vs. RTOXY: Which Stock Is the Better Value Option?
Investors with an interest in Engineering - R and D Services stocks have likely encountered both KBR Inc. (KBR - Free Report) and ROTORK PLC . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
KBR Inc. and ROTORK PLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that KBR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
KBR currently has a forward P/E ratio of 12.30, while RTOXY has a forward P/E of 20.14. We also note that KBR has a PEG ratio of 1.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RTOXY currently has a PEG ratio of 1.75.
Another notable valuation metric for KBR is its P/B ratio of 1.57. 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, RTOXY has a P/B of 4.35.
Based on these metrics and many more, KBR holds a Value grade of A, while RTOXY has a Value grade of C.
KBR stands above RTOXY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KBR is the superior value option right now.