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JEC vs. CHYCY: Which Stock Is the Better Value Option?


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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Jacobs Engineering (JEC) or Chiyoda Corp. Unsponsored ADR (CHYCY). 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.

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 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, Jacobs Engineering has a Zacks Rank of #2 (Buy), while Chiyoda Corp. Unsponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that JEC likely has seen a stronger improvement to its earnings outlook than CHYCY has recently. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 popular P/E ratio, as well as the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JEC currently has a forward P/E ratio of 15.48, while CHYCY has a forward P/E of 24. We also note that JEC has a PEG ratio of 1.07. 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. CHYCY currently has a PEG ratio of 2.40.

Another notable valuation metric for JEC is its P/B ratio of 1.55. 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, CHYCY has a P/B of 1.61.

These metrics, and several others, help JEC earn a Value grade of A, while CHYCY has been given a Value grade of F.

JEC sticks out from CHYCY in both our Zacks Rank and Style Scores models, so value investors will likely feel that JEC is the better option right now.


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Jacobs Engineering Group Inc. (JEC): Free Stock Analysis Report

Chiyoda Corp. Unsponsored ADR (CHYCY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: JEC , CHYCY



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