RTO or ULS: Which Is the Better Value Stock Right Now?

Core Insights - The article compares Rentokil Initial PLC (RTO) and UL Solutions Inc. (ULS) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Earnings Outlook - Rentokil Initial PLC has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while UL Solutions Inc. has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank favors stocks with positive revisions to earnings estimates, suggesting RTO has an improving earnings outlook [3] Group 2: Valuation Metrics - RTO has a forward P/E ratio of 19.91, significantly lower than ULS's forward P/E of 28.45 [5] - RTO's PEG ratio is 2.71, while ULS's PEG ratio is much higher at 6.51, indicating RTO may be undervalued relative to its growth expectations [5] - RTO's P/B ratio stands at 3.01, compared to ULS's P/B of 12.09, further suggesting RTO is more attractively valued [6] Group 3: Value Grades - RTO has a Value grade of B, while ULS has a Value grade of C, indicating RTO is perceived as a better value investment [7] - The combination of Zacks Rank and Style Scores indicates that RTO is a more favorable option for value investors at this time [7]