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GTLS or CR: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Chart Industries (GTLS - Free Report) or Crane (CR - 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.

Both Chart Industries and Crane have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

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.

GTLS currently has a forward P/E ratio of 11.41, while CR has a forward P/E of 28.56. We also note that GTLS has a PEG ratio of 0.38. 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. CR currently has a PEG ratio of 2.22.

Another notable valuation metric for GTLS is its P/B ratio of 2.06. 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, CR has a P/B of 5.78.

These metrics, and several others, help GTLS earn a Value grade of B, while CR has been given a Value grade of D.

Both GTLS and CR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GTLS is the superior value option right now.


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