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GRC vs. IR: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Gorman-Rupp (GRC - Free Report) or Ingersoll Rand (IR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gorman-Rupp and Ingersoll Rand are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GRC likely has seen a stronger improvement to its earnings outlook than IR has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GRC currently has a forward P/E ratio of 24.76, while IR has a forward P/E of 30. We also note that GRC has a PEG ratio of 1.90. 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. IR currently has a PEG ratio of 2.79.
Another notable valuation metric for GRC is its P/B ratio of 3.05. 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, IR has a P/B of 4.01.
These are just a few of the metrics contributing to GRC's Value grade of B and IR's Value grade of D.
GRC stands above IR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GRC is the superior value option right now.
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GRC vs. IR: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Gorman-Rupp (GRC - Free Report) or Ingersoll Rand (IR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Gorman-Rupp and Ingersoll Rand are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GRC likely has seen a stronger improvement to its earnings outlook than IR has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GRC currently has a forward P/E ratio of 24.76, while IR has a forward P/E of 30. We also note that GRC has a PEG ratio of 1.90. 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. IR currently has a PEG ratio of 2.79.
Another notable valuation metric for GRC is its P/B ratio of 3.05. 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, IR has a P/B of 4.01.
These are just a few of the metrics contributing to GRC's Value grade of B and IR's Value grade of D.
GRC stands above IR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GRC is the superior value option right now.