Markets

ASHTY vs. BOUYF: Which Stock Should Value Investors Buy Now?

Investors looking for stocks in the Industrial Services sector might want to consider either Ashtead Group PLC (ASHTY) or BOUYGUES SA (BOUYF). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Ashtead Group PLC and BOUYGUES SA are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASHTY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

ASHTY currently has a forward P/E ratio of 9.21, while BOUYF has a forward P/E of 10.78. We also note that ASHTY has a PEG ratio of 0.61. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BOUYF currently has a PEG ratio of 2.34.

Another notable valuation metric for ASHTY is its P/B ratio of 2.98. 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, BOUYF has a P/B of 5.23.

Based on these metrics and many more, ASHTY holds a Value grade of B, while BOUYF has a Value grade of C.

ASHTY has seen stronger estimate revision activity and sports more attractive valuation metrics than BOUYF, so it seems like value investors will conclude that ASHTY is the superior option right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ashtead Group PLC (ASHTY): Free Stock Analysis Report

BOUYGUES SA (BOUYF): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

BOUYF ASHTY

Other Topics

Investing Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More