MEG or ZWS: Which Is the Better Value Stock Right Now?

Core Viewpoint - Montrose Environmental (MEG) is currently viewed as a better value opportunity compared to Zurn Water (ZWS) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - Montrose Environmental has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while Zurn Water has a Zacks Rank of 3 (Hold) [3]. - The Zacks Rank system is designed to identify companies with improving earnings outlooks, which favors MEG over ZWS [3]. Group 2: Valuation Metrics - MEG has a forward P/E ratio of 16.27, significantly lower than ZWS's forward P/E of 28.23, suggesting that MEG is undervalued relative to ZWS [5]. - MEG's PEG ratio is 0.85, indicating a favorable growth outlook compared to ZWS's PEG ratio of 2.01, which suggests that ZWS may be overvalued [5]. - MEG's P/B ratio stands at 1.98, while ZWS has a P/B ratio of 4.91, further supporting the notion that MEG is a more attractive value option [6]. Group 3: Overall Value Assessment - Based on the aforementioned metrics, MEG holds a Value grade of B, whereas ZWS has a Value grade of C, reinforcing MEG's position as the superior value investment at this time [6].