雅虎香港財經 SIEGY vs. ASHTY: Which Stock Is the Better Value Option?
Investors interested in Industrial Services stocks are likely familiar with Siemens AG (SIEGY) and Ashtead Group PLC (ASHTY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Siemens AG is sporting a Zacks Rank of #2 (Buy), while Ashtead Group PLC has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SIEGY is likely seeing its earnings outlook improve to a greater extent. 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 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.
SIEGY currently has a forward P/E ratio of 16.91, while ASHTY has a forward P/E of 17.92. We also note that SIEGY has a PEG ratio of 2.35. 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. ASHTY currently has a PEG ratio of 3.24.
Another notable valuation metric for SIEGY is its P/B ratio of 2.85. 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 4.60.
These are just a few of the metrics contributing to SIEGY's Value grade of B 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
