JEC or RTOXY: Which Is the Better Value Stock Right Now?
Investors interested in Engineering - R and D Services stocks are likely familiar with Jacobs Engineering (JEC) and ROTORK PLC (RTOXY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Jacobs Engineering has a Zacks Rank of #2 (Buy), while ROTORK PLC has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that JEC likely has seen a stronger improvement to its earnings outlook than RTOXY has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
JEC currently has a forward P/E ratio of 17.77, while RTOXY has a forward P/E of 22.68. We also note that JEC has a PEG ratio of 1.48. 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. RTOXY currently has a PEG ratio of 1.81.
Another notable valuation metric for JEC is its P/B ratio of 2.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, RTOXY has a P/B of 5.21.
These are just a few of the metrics contributing to JEC's Value grade of A and RTOXY's Value grade of C.
JEC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JEC is likely the superior value option right now.
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Jacobs Engineering Group Inc. (JEC) : Free Stock Analysis Report
ROTORK PLC (RTOXY) : Free Stock Analysis Report
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