MNRO vs. MCW: Which Stock Is the Better Value Option?
Investors looking for stocks in the Consumer Services - Miscellaneous sector might want to consider either Monro Muffler Brake (MNRO) or Mister Car Wash (MCW). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Right now, Monro Muffler Brake is sporting a Zacks Rank of #2 (Buy), while Mister Car Wash has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MNRO has an improving earnings outlook. But this is only part of the picture 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 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.
MNRO currently has a forward P/E ratio of 20.32, while MCW has a forward P/E of 27.32. We also note that MNRO has a PEG ratio of 1.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MCW currently has a PEG ratio of 4.95.
Another notable valuation metric for MNRO is its P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MCW has a P/B of 3.
These metrics, and several others, help MNRO earn a Value grade of A, while MCW has been given a Value grade of D.
MNRO 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 MNRO is likely the superior value option right now.
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Monro Muffler Brake, Inc. (MNRO) : Free Stock Analysis Report
Mister Car Wash, Inc. (MCW) : Free Stock Analysis Report
