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MPTI or HWM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI - Free Report) or Howmet (HWM - 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 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.
M-tron Industries, Inc. has a Zacks Rank of #1 (Strong Buy), while Howmet has a Zacks Rank of #3 (Hold) right now. This means that MPTI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
MPTI currently has a forward P/E ratio of 12.11, while HWM has a forward P/E of 26.18. We also note that MPTI has a PEG ratio of 0.71. 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. HWM currently has a PEG ratio of 1.09.
Another notable valuation metric for MPTI is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HWM has a P/B of 5.01.
These metrics, and several others, help MPTI earn a Value grade of B, while HWM has been given a Value grade of D.
MPTI 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 MPTI is likely the superior value option right now.
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MPTI or HWM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI - Free Report) or Howmet (HWM - 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 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.
M-tron Industries, Inc. has a Zacks Rank of #1 (Strong Buy), while Howmet has a Zacks Rank of #3 (Hold) right now. This means that MPTI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.
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.
MPTI currently has a forward P/E ratio of 12.11, while HWM has a forward P/E of 26.18. We also note that MPTI has a PEG ratio of 0.71. 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. HWM currently has a PEG ratio of 1.09.
Another notable valuation metric for MPTI is its P/B ratio of 2.28. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HWM has a P/B of 5.01.
These metrics, and several others, help MPTI earn a Value grade of B, while HWM has been given a Value grade of D.
MPTI 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 MPTI is likely the superior value option right now.