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STRL or ALTR: 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 Sterling Infrastructure (STRL - Free Report) or Altair Engineering (ALTR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Currently, Sterling Infrastructure has a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This means that STRL'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.
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.
STRL currently has a forward P/E ratio of 25.79, while ALTR has a forward P/E of 76.82. We also note that STRL has a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALTR currently has a PEG ratio of 6.40.
Another notable valuation metric for STRL is its P/B ratio of 6.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ALTR has a P/B of 10.20.
These are just a few of the metrics contributing to STRL's Value grade of B and ALTR's Value grade of F.
STRL 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 STRL is likely the superior value option right now.
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STRL or ALTR: 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 Sterling Infrastructure (STRL - Free Report) or Altair Engineering (ALTR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Currently, Sterling Infrastructure has a Zacks Rank of #2 (Buy), while Altair Engineering has a Zacks Rank of #3 (Hold). This means that STRL'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.
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.
STRL currently has a forward P/E ratio of 25.79, while ALTR has a forward P/E of 76.82. We also note that STRL has a PEG ratio of 1.72. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ALTR currently has a PEG ratio of 6.40.
Another notable valuation metric for STRL is its P/B ratio of 6.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ALTR has a P/B of 10.20.
These are just a few of the metrics contributing to STRL's Value grade of B and ALTR's Value grade of F.
STRL 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 STRL is likely the superior value option right now.