U.S. Markets closed
  • S&P Futures

    4,123.50
    -1.00 (-0.02%)
     
  • Dow Futures

    32,740.00
    +3.00 (+0.01%)
     
  • Nasdaq Futures

    13,021.50
    -10.00 (-0.08%)
     
  • Russell 2000 Futures

    1,913.10
    -1.50 (-0.08%)
     
  • Crude Oil

    90.18
    -0.32 (-0.35%)
     
  • Gold

    1,809.70
    -2.60 (-0.14%)
     
  • Silver

    20.47
    -0.02 (-0.08%)
     
  • EUR/USD

    1.0219
    +0.0001 (+0.0102%)
     
  • 10-Yr Bond

    2.7970
    +0.0320 (+1.16%)
     
  • Vix

    21.77
    +0.48 (+2.25%)
     
  • GBP/USD

    1.2081
    +0.0005 (+0.0399%)
     
  • USD/JPY

    135.0150
    -0.1010 (-0.0747%)
     
  • BTC-USD

    22,905.02
    -929.69 (-3.90%)
     
  • CMC Crypto 200

    531.49
    -25.86 (-4.64%)
     
  • FTSE 100

    7,488.15
    +5.78 (+0.08%)
     
  • Nikkei 225

    27,767.07
    -232.93 (-0.83%)
     

QRHC or WCN: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in stocks from the Waste Removal Services sector have probably already heard of Quest Resource (QRHC) and Waste Connections (WCN). 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 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, Quest Resource has a Zacks Rank of #2 (Buy), while Waste Connections 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 QRHC has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

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.

QRHC currently has a forward P/E ratio of 14.79, while WCN has a forward P/E of 32.38. We also note that QRHC has a PEG ratio of 0.99. 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. WCN currently has a PEG ratio of 2.52.

Another notable valuation metric for QRHC is its P/B ratio of 1.04. 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, WCN has a P/B of 4.59.

Based on these metrics and many more, QRHC holds a Value grade of B, while WCN has a Value grade of C.

QRHC sticks out from WCN in both our Zacks Rank and Style Scores models, so value investors will likely feel that QRHC 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
 
To read this article on Zacks.com click here.
 
Zacks Investment Research