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EEX vs. MNRO: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either Emerald Expositions Events, Inc. (EEX - 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.

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.

Right now, Emerald Expositions Events, Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Monro Muffler Brake has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EEX is likely seeing its earnings outlook improve to a greater extent. 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.

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.

EEX currently has a forward P/E ratio of 2.82, while MNRO has a forward P/E of 16.92. We also note that EEX has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MNRO currently has a PEG ratio of 1.13.

Another notable valuation metric for EEX is its P/B ratio of 0.28. 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, MNRO has a P/B of 1.78.

These are just a few of the metrics contributing to EEX's Value grade of A and MNRO's Value grade of C.

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


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

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