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

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Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both BrightView Holdings (BV - Free Report) and Monro Muffler Brake (MNRO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 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.

Currently, BrightView Holdings has a Zacks Rank of #2 (Buy), while Monro Muffler Brake has a Zacks Rank of #4 (Sell). This means that BV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

BV currently has a forward P/E ratio of 14.73, while MNRO has a forward P/E of 28.28. We also note that BV has a PEG ratio of 0.78. 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 2.18.

Another notable valuation metric for BV is its P/B ratio of 1.52. 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, MNRO has a P/B of 3.21.

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

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


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

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

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