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MARUY or DHR: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Diversified Operations sector might want to consider either Marubeni Corp. (MARUY) or Danaher (DHR). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Marubeni Corp. and Danaher are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that MARUY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MARUY currently has a forward P/E ratio of 4.08, while DHR has a forward P/E of 23.52. We also note that MARUY has a PEG ratio of 0.16. 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. DHR currently has a PEG ratio of 2.69.

Another notable valuation metric for MARUY is its P/B ratio of 0.85. 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, DHR has a P/B of 4.09.

Based on these metrics and many more, MARUY holds a Value grade of A, while DHR has a Value grade of D.

MARUY stands above DHR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MARUY is the superior value option right now.


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