Which stock currently offers the better value?

Investors looking for stocks in the Manufacturing – General Industry sector should consider either Chart Industries (GTLS) or Crane (CR). But which of these two stocks offers value investors the better value right now? We need to take a closer look.

We have found that the best way to discover great value opportunities is to combine a strong Zacks Rank with an excellent grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores evaluate companies based on specific traits.

Both Chart Industries and Crane currently have a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive earnings estimate revisions, so investors can be confident that both companies have better earnings prospects. But that’s only one piece of the puzzle for value investors.

Value investors are also interested in a number of proven valuation metrics that show when a company is undervalued at its current share price level.

The Value category of the Style Scores system identifies undervalued companies using a number of key metrics, including the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other fundamentals that help us determine a company’s fair value.

GTLS currently has a forward P/E ratio of 11.41, while CR has a forward P/E ratio of 28.56. We also note that GTLS has a PEG ratio of 0.38. This value is similar to the commonly used P/E ratio, where the PEG ratio also takes into account a company’s expected earnings growth rate. CR currently has a PEG ratio of 2.22.

Another important valuation metric for GTLS is its P/B ratio of 2.06. 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. For comparison, CR has a P/B ratio of 5.78.

These and several other metrics help GTLS earn a B rating, while CR earns a D rating.

Both GTLS and CR are impressive stocks with solid earnings prospects, but based on these valuation numbers, we believe GTLS is the better value option right now.

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Chart Industries, Inc. (GTLS): Free Stock Analysis Report

Crane Company (CR): Free Stock Analysis Report

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