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STRL vs. HWM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Sterling Infrastructure (STRL - Free Report) and 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, both Sterling Infrastructure and Howmet are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
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.
STRL currently has a forward P/E ratio of 15.10, while HWM has a forward P/E of 27.29. We also note that STRL has a PEG ratio of 0.84. 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 1.64.
Another notable valuation metric for STRL is its P/B ratio of 3.28. 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 5.13.
These metrics, and several others, help STRL earn a Value grade of A, while HWM has been given a Value grade of D.
Both STRL and HWM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRL is the superior value option right now.
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STRL vs. HWM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Sterling Infrastructure (STRL - Free Report) and 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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, both Sterling Infrastructure and Howmet are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
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.
STRL currently has a forward P/E ratio of 15.10, while HWM has a forward P/E of 27.29. We also note that STRL has a PEG ratio of 0.84. 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 1.64.
Another notable valuation metric for STRL is its P/B ratio of 3.28. 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 5.13.
These metrics, and several others, help STRL earn a Value grade of A, while HWM has been given a Value grade of D.
Both STRL and HWM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that STRL is the superior value option right now.