Yahoo Finance QRHC vs. SRCL: Which Stock Should Value Investors Buy Now?
Investors interested in Waste Removal Services stocks are likely familiar with Quest Resource (QRHC) and Stericycle (SRCL). But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Quest Resource has a Zacks Rank of #2 (Buy), while Stericycle has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that QRHC has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
QRHC currently has a forward P/E ratio of 18.87, while SRCL has a forward P/E of 22.79. We also note that QRHC has a PEG ratio of 1.26. 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. SRCL currently has a PEG ratio of 2.85.
Another notable valuation metric for QRHC is its P/B ratio of 1.33. 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, SRCL has a P/B of 1.84.
Based on these metrics and many more, QRHC holds a Value grade of B, while SRCL has a Value grade of C.
QRHC stands above SRCL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that QRHC is the superior value option right now.
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Quest Resource Holding Corporation. (QRHC) : Free Stock Analysis Report
Stericycle, Inc. (SRCL) : Free Stock Analysis Report
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