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MARUY vs. DHR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Diversified Operations sector might want to consider either Marubeni Corp. (MARUY - Free Report) or Danaher (DHR - Free Report) . 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Marubeni Corp. has a Zacks Rank of #1 (Strong Buy), while Danaher has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that MARUY likely has seen a stronger improvement to its earnings outlook than DHR has recently. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

MARUY currently has a forward P/E ratio of 4.26, while DHR has a forward P/E of 25.86. We also note that MARUY has a PEG ratio of 0.17. 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. DHR currently has a PEG ratio of 2.96.

Another notable valuation metric for MARUY is its P/B ratio of 1. 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, DHR has a P/B of 4.50.

These metrics, and several others, help MARUY earn a Value grade of A, while DHR has been given a Value grade of D.

MARUY sticks out from DHR in both our Zacks Rank and Style Scores models, so value investors will likely feel that MARUY is the better option right now.


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