BRRAY or ITT: Which Is the Better Value Stock Right Now?
BRRAY vs. ITT: Which Stock Is the Better Value Option?
Investors with an interest in Diversified Operations stocks have likely encountered both Barloworld Ltd. (BRRAY) and ITT (ITT). 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Currently, both Barloworld Ltd. and ITT are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies 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.
BRRAY currently has a forward P/E ratio of 11.32, while ITT has a forward P/E of 25.19. We also note that BRRAY has a PEG ratio of 1.17. 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. ITT currently has a PEG ratio of 1.74.
Another notable valuation metric for BRRAY is its P/B ratio of 1.52. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ITT has a P/B of 4.09.
These metrics, and several others, help BRRAY earn a Value grade of B, while ITT has been given a Value grade of D.
Both BRRAY and ITT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BRRAY is the superior value option right now.
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Barloworld Ltd. (BRRAY): Free Stock Analysis Report
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