Core Insights - The article compares Rentokil Initial PLC (RTO) and Thomson Reuters (TRI) to determine which stock is more attractive to value investors [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] Valuation Metrics - RTO has a forward P/E ratio of 23.19, while TRI has a significantly higher forward P/E of 42.46 [5] - RTO's PEG ratio is 5.16, which is comparable to TRI's PEG ratio of 5.31, indicating similar expected earnings growth rates [5] - RTO's P/B ratio stands at 2.77, whereas TRI's P/B ratio is much higher at 5.84, suggesting RTO is more undervalued relative to its book value [6] Value Grades - Based on the valuation metrics, RTO holds a Value grade of B, while TRI has a Value grade of D, indicating RTO is the superior value option at this time [6]
RTO vs. TRI: Which Stock Should Value Investors Buy Now?