Investors with an interest in Consumer Services - Miscellaneous stocks have likely encountered both SP Plus (SP) and Monro Muffler Brake (MNRO). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, SP Plus has a Zacks Rank of #2 (Buy), while Monro Muffler Brake 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 SP has an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
SP currently has a forward P/E ratio of 12.97, while MNRO has a forward P/E of 31.23. We also note that SP has a PEG ratio of 1.30. 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. MNRO currently has a PEG ratio of 2.50.
Another notable valuation metric for SP is its P/B ratio of 2.09. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, MNRO has a P/B of 3.99.
Based on these metrics and many more, SP holds a Value grade of A, while MNRO has a Value grade of C.
SP stands above MNRO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SP is the superior value option right now.
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SP Plus Corporation (SP) : Free Stock Analysis Report
Monro Muffler Brake, Inc. (MNRO) : Free Stock Analysis Report
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