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TKR vs. TRS: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Metal Products - Procurement and Fabrication sector might want to consider either Timken (TKR - Free Report) or TriMas (TRS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Timken has a Zacks Rank of #1 (Strong Buy), while TriMas has a Zacks Rank of #2 (Buy). This means that TKR'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.
TKR currently has a forward P/E ratio of 8.85, while TRS has a forward P/E of 15.46. We also note that TKR has a PEG ratio of 0.94. 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. TRS currently has a PEG ratio of 3.09.
Another notable valuation metric for TKR is its P/B ratio of 2.09. 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, TRS has a P/B of 2.10.
These metrics, and several others, help TKR earn a Value grade of B, while TRS has been given a Value grade of C.
TKR stands above TRS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TKR is the superior value option right now.
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TKR vs. TRS: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Metal Products - Procurement and Fabrication sector might want to consider either Timken (TKR - Free Report) or TriMas (TRS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Timken has a Zacks Rank of #1 (Strong Buy), while TriMas has a Zacks Rank of #2 (Buy). This means that TKR'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.
TKR currently has a forward P/E ratio of 8.85, while TRS has a forward P/E of 15.46. We also note that TKR has a PEG ratio of 0.94. 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. TRS currently has a PEG ratio of 3.09.
Another notable valuation metric for TKR is its P/B ratio of 2.09. 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, TRS has a P/B of 2.10.
These metrics, and several others, help TKR earn a Value grade of B, while TRS has been given a Value grade of C.
TKR stands above TRS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TKR is the superior value option right now.