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EEX vs. MNRO: Which Stock Is the Better Value Option?

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Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both Emerald Expositions Events, Inc. (EEX - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Emerald Expositions Events, Inc. has a Zacks Rank of #1 (Strong Buy), while Monro Muffler Brake has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that EEX 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 analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

EEX currently has a forward P/E ratio of 2.53, while MNRO has a forward P/E of 25.62. We also note that EEX has a PEG ratio of 0.51. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MNRO currently has a PEG ratio of 1.71.

Another notable valuation metric for EEX is its P/B ratio of 0.25. 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 2.47.

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