Yahoo Finance SSUMY vs. ITT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY) and ITT (ITT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, both Sumitomo Corp. and ITT are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
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.
SSUMY currently has a forward P/E ratio of 9.37, while ITT has a forward P/E of 23.86. We also note that SSUMY has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ITT currently has a PEG ratio of 1.81.
Another notable valuation metric for SSUMY is its P/B ratio of 1.03. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ITT has a P/B of 4.43.
These are just a few of the metrics contributing to SSUMY's Value grade of A and ITT's Value grade of C.
Both SSUMY and ITT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SSUMY is the superior value option right now.
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Sumitomo Corp. (SSUMY) : Free Stock Analysis Report
ITT Inc. (ITT) : Free Stock Analysis Report
