Yahoo Finance GRC or IR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Gorman-Rupp (GRC) or Ingersoll Rand (IR). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, both Gorman-Rupp and Ingersoll Rand are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
GRC currently has a forward P/E ratio of 22.16, while IR has a forward P/E of 28.45. We also note that GRC has a PEG ratio of 1.70. 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. IR currently has a PEG ratio of 2.92.
Another notable valuation metric for GRC is its P/B ratio of 2.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, IR has a P/B of 3.78.
These are just a few of the metrics contributing to GRC's Value grade of B and IR's Value grade of D.
Both GRC and IR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GRC is the superior value option right now.
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Gorman-Rupp Company (The) (GRC) : Free Stock Analysis Report
Ingersoll Rand Inc. (IR) : Free Stock Analysis Report
