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BV or MNRO: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either BrightView Holdings (BV - Free Report) or Monro Muffler Brake (MNRO - 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.

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.

BrightView Holdings and Monro Muffler Brake are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that BV likely has seen a stronger improvement to its earnings outlook than MNRO has recently. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

BV currently has a forward P/E ratio of 17.29, while MNRO has a forward P/E of 30.93. We also note that BV has a PEG ratio of 0.91. 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. MNRO currently has a PEG ratio of 2.38.

Another notable valuation metric for BV is its P/B ratio of 1.62. 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, MNRO has a P/B of 3.89.

Based on these metrics and many more, BV holds a Value grade of A, while MNRO has a Value grade of D.

BV has seen stronger estimate revision activity and sports more attractive valuation metrics than MNRO, so it seems like value investors will conclude that BV is the superior option right now.


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Monro Muffler Brake, Inc. (MNRO) - free report >>

BrightView Holdings, Inc. (BV) - free report >>

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