SIEGY or ASHTY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Industrial Services sector might want to consider either Siemens AG (SIEGY) or Ashtead Group PLC (ASHTY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 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, Siemens AG has a Zacks Rank of #1 (Strong Buy), while Ashtead Group PLC has a Zacks Rank of #5 (Strong Sell). This means that SIEGY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SIEGY currently has a forward P/E ratio of 16.47, while ASHTY has a forward P/E of 16.81. We also note that SIEGY has a PEG ratio of 2.19. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASHTY currently has a PEG ratio of 2.26.
Another notable valuation metric for SIEGY is its P/B ratio of 2.56. 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, ASHTY has a P/B of 4.48.
These metrics, and several others, help SIEGY earn a Value grade of B, while ASHTY has been given a Value grade of D.
SIEGY stands above ASHTY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SIEGY is the superior value option right now.
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Siemens AG (SIEGY) : Free Stock Analysis Report
Ashtead Group PLC (ASHTY) : Free Stock Analysis Report
