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BWMN vs. CTAS: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN - Free Report) and Cintas (CTAS - Free Report) . 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.
Right now, Bowman Consulting is sporting a Zacks Rank of #1 (Strong Buy), while Cintas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BWMN likely has seen a stronger improvement to its earnings outlook than CTAS has recently. 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.
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.
BWMN currently has a forward P/E ratio of 20.36, while CTAS has a forward P/E of 44.31. We also note that BWMN has a PEG ratio of 1.18. 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. CTAS currently has a PEG ratio of 3.69.
Another notable valuation metric for BWMN is its P/B ratio of 1.73. 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, CTAS has a P/B of 17.96.
These metrics, and several others, help BWMN earn a Value grade of B, while CTAS has been given a Value grade of D.
BWMN has seen stronger estimate revision activity and sports more attractive valuation metrics than CTAS, so it seems like value investors will conclude that BWMN is the superior option right now.
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BWMN vs. CTAS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Business - Services stocks have likely encountered both Bowman Consulting (BWMN - Free Report) and Cintas (CTAS - Free Report) . 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.
Right now, Bowman Consulting is sporting a Zacks Rank of #1 (Strong Buy), while Cintas has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BWMN likely has seen a stronger improvement to its earnings outlook than CTAS has recently. 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.
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.
BWMN currently has a forward P/E ratio of 20.36, while CTAS has a forward P/E of 44.31. We also note that BWMN has a PEG ratio of 1.18. 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. CTAS currently has a PEG ratio of 3.69.
Another notable valuation metric for BWMN is its P/B ratio of 1.73. 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, CTAS has a P/B of 17.96.
These metrics, and several others, help BWMN earn a Value grade of B, while CTAS has been given a Value grade of D.
BWMN has seen stronger estimate revision activity and sports more attractive valuation metrics than CTAS, so it seems like value investors will conclude that BWMN is the superior option right now.