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TTEK or DCI: Which Is the Better Value Stock Right Now?
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Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK - Free Report) and Donaldson (DCI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tetra Tech has a Zacks Rank of #2 (Buy), while Donaldson has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. 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.
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.
TTEK currently has a forward P/E ratio of 18.07, while DCI has a forward P/E of 19.60. We also note that TTEK has a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DCI currently has a PEG ratio of 1.70.
Another notable valuation metric for TTEK is its P/B ratio of 2.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DCI has a P/B of 7.04.
Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C.
TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now.
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TTEK or DCI: Which Is the Better Value Stock Right Now?
Investors interested in Pollution Control stocks are likely familiar with Tetra Tech (TTEK - Free Report) and Donaldson (DCI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Tetra Tech has a Zacks Rank of #2 (Buy), while Donaldson has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTEK likely has seen a stronger improvement to its earnings outlook than DCI has recently. 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.
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.
TTEK currently has a forward P/E ratio of 18.07, while DCI has a forward P/E of 19.60. We also note that TTEK has a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DCI currently has a PEG ratio of 1.70.
Another notable valuation metric for TTEK is its P/B ratio of 2.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DCI has a P/B of 7.04.
Based on these metrics and many more, TTEK holds a Value grade of B, while DCI has a Value grade of C.
TTEK has seen stronger estimate revision activity and sports more attractive valuation metrics than DCI, so it seems like value investors will conclude that TTEK is the superior option right now.