Yahoo Finance GTLS vs. IR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Chart Industries (GTLS) or Ingersoll Rand (IR). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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, both Chart Industries and Ingersoll Rand are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
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 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.
GTLS currently has a forward P/E ratio of 13.09, while IR has a forward P/E of 28.68. We also note that GTLS has a PEG ratio of 0.43. 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. IR currently has a PEG ratio of 3.10.
Another notable valuation metric for GTLS is its P/B ratio of 2.24. 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, IR has a P/B of 3.78.
Based on these metrics and many more, GTLS holds a Value grade of B, while IR has a Value grade of D.
Both GTLS and IR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GTLS is the superior value option right now.
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Chart Industries, Inc. (GTLS) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
