ECVT vs. TRI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Technology Services sector might want to consider either Ecovyst (ECVT) or Thomson Reuters (TRI). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Ecovyst and Thomson Reuters are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
ECVT currently has a forward P/E ratio of 10.74, while TRI has a forward P/E of 35.24. We also note that ECVT has a PEG ratio of 0.47. 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. TRI currently has a PEG ratio of 2.99.
Another notable valuation metric for ECVT is its P/B ratio of 1.64. 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, TRI has a P/B of 4.78.
Based on these metrics and many more, ECVT holds a Value grade of A, while TRI has a Value grade of D.
Both ECVT and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ECVT is the superior value option right now.
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Ecovyst Inc. (ECVT) : Free Stock Analysis Report
Thomson Reuters Corp (TRI) : Free Stock Analysis Report
