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ASHTY or BOUYF: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Industrial Services sector might want to consider either Ashtead Group PLC (ASHTY - Free Report) or BOUYGUES SA (BOUYF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Right now, Ashtead Group PLC is sporting a Zacks Rank of #2 (Buy), while BOUYGUES SA has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASHTY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ASHTY currently has a forward P/E ratio of 9.48, while BOUYF has a forward P/E of 14.84. We also note that ASHTY has a PEG ratio of 0.63. 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. BOUYF currently has a PEG ratio of 3.23.

Another notable valuation metric for ASHTY is its P/B ratio of 3.06. 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, BOUYF has a P/B of 5.61.

These metrics, and several others, help ASHTY earn a Value grade of B, while BOUYF has been given a Value grade of D.

ASHTY sticks out from BOUYF in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASHTY is the better option right now.


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