Yahoo Finance SSUMY or ITT: Which Is the Better Value Stock Right Now?
Investors interested in Diversified Operations stocks are likely familiar with Sumitomo Corp. (SSUMY) and ITT (ITT). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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). 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. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
SSUMY currently has a forward P/E ratio of 9.01, while ITT has a forward P/E of 21.94. We also note that SSUMY has a PEG ratio of 0.62. 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 1.66.
Another notable valuation metric for SSUMY is its P/B ratio of 0.99. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ITT has a P/B of 4.08.
Based on these metrics and many more, SSUMY holds a Value grade of A, while ITT has a 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
