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MEG vs. CWST: Which Stock Is the Better Value Option?
ZACKSยท2025-03-06 17:45

Core Insights - The article compares two stocks in the Waste Removal Services sector: Montrose Environmental (MEG) and Casella (CWST), evaluating which presents a better value opportunity for investors [1] Valuation Metrics - Both MEG and CWST currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] - MEG has a forward P/E ratio of 17.77, significantly lower than CWST's forward P/E of 96.09, suggesting MEG is more attractively priced [5] - MEG's PEG ratio is 0.49, while CWST's PEG ratio is 3.73, indicating that MEG is expected to grow earnings at a more favorable rate relative to its price [5] - MEG's P/B ratio stands at 1.53, compared to CWST's P/B of 4.56, further supporting the notion that MEG is undervalued relative to its book value [6] - Based on these valuation metrics, MEG is assigned a Value grade of B, while CWST receives a Value grade of C, reinforcing MEG's position as the superior value option [6]