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BV vs. MNRO: Which Stock Should Value Investors Buy 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 is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

BrightView Holdings has a Zacks Rank of #2 (Buy), while Monro Muffler Brake has a Zacks Rank of #5 (Strong Sell) 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 factor that value investors are interested in.

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.

BV currently has a forward P/E ratio of 15.41, while MNRO has a forward P/E of 28.76. We also note that BV has a PEG ratio of 0.81. 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. MNRO currently has a PEG ratio of 2.21.

Another notable valuation metric for BV is its P/B ratio of 1.59. 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, MNRO has a P/B of 3.23.

These are just a few of the metrics contributing to BV's Value grade of B and MNRO's 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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