Yahoo Finance SIEGY vs. ASHTY: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Industrial Services sector might want to consider either Siemens AG (SIEGY) or Ashtead Group PLC (ASHTY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Siemens AG and Ashtead Group PLC are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SIEGY likely has seen a stronger improvement to its earnings outlook than ASHTY has recently. 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 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.
SIEGY currently has a forward P/E ratio of 17.51, while ASHTY has a forward P/E of 18.48. We also note that SIEGY has a PEG ratio of 0.50. 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 0.97.
Another notable valuation metric for SIEGY is its P/B ratio of 2.23. 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 5.57.
These are just a few of the metrics contributing to SIEGY's Value grade of A and ASHTY's Value grade of C.
SIEGY has seen stronger estimate revision activity and sports more attractive valuation metrics than ASHTY, so it seems like value investors will conclude that SIEGY is the superior option right now.
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Siemens AG (SIEGY) : Free Stock Analysis Report
Ashtead Group PLC (ASHTY) : Free Stock Analysis Report
