Yahoo Finance HTHIY or DHR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Hitachi Ltd. (HTHIY) and Danaher (DHR). But which of these two companies is the best option for those looking for undervalued stocks? 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, Hitachi Ltd. has a Zacks Rank of #1 (Strong Buy), while Danaher has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HTHIY 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.
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.
HTHIY currently has a forward P/E ratio of 10.80, while DHR has a forward P/E of 24.90. We also note that HTHIY has a PEG ratio of 1.47. 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. DHR currently has a PEG ratio of 2.08.
Another notable valuation metric for HTHIY is its P/B ratio of 1.29. 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, DHR has a P/B of 3.80.
These are just a few of the metrics contributing to HTHIY's Value grade of B and DHR's Value grade of D.
HTHIY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HTHIY is the superior value option right now.
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Hitachi Ltd. (HTHIY) : Free Stock Analysis Report
Danaher Corporation (DHR) : Free Stock Analysis Report
