Yahoo Finance HDSN or ASHTY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Industrial Services sector have probably already heard of Hudson Technologies (HDSN) and Ashtead Group PLC (ASHTY). 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both Hudson Technologies and Ashtead Group PLC are holding a Zacks Rank of # 1 (Strong Buy). 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. 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 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.
HDSN currently has a forward P/E ratio of 4.57, while ASHTY has a forward P/E of 15.82. We also note that HDSN has a PEG ratio of 0.15. 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. ASHTY currently has a PEG ratio of 0.83.
Another notable valuation metric for HDSN is its P/B ratio of 2.61. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ASHTY has a P/B of 4.84.
Based on these metrics and many more, HDSN holds a Value grade of A, while ASHTY has a Value grade of C.
Both HDSN and ASHTY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HDSN is the superior value option right now.
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Hudson Technologies, Inc. (HDSN) : Free Stock Analysis Report
Ashtead Group PLC (ASHTY) : Free Stock Analysis Report
