Yahoo Finance SIEGY vs. ASHTY: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Industrial Services sector have probably already heard of Siemens AG (SIEGY) and Ashtead Group PLC (ASHTY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Siemens AG and Ashtead Group PLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIEGY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SIEGY currently has a forward P/E ratio of 16.30, while ASHTY has a forward P/E of 18.77. We also note that SIEGY has a PEG ratio of 2.09. 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. ASHTY currently has a PEG ratio of 3.39.
Another notable valuation metric for SIEGY is its P/B ratio of 2.75. 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, ASHTY has a P/B of 4.82.
These are just a few of the metrics contributing to SIEGY's Value grade of B and ASHTY's Value grade of C.
SIEGY sticks out from ASHTY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SIEGY is the better option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Siemens AG (SIEGY) : Free Stock Analysis Report
Ashtead Group PLC (ASHTY) : Free Stock Analysis Report
