MEG vs. WM: Which Stock Is the Better Value Option?

Core Viewpoint - Investors are evaluating Montrose Environmental (MEG) and Waste Management (WM) to determine which stock represents a better value opportunity in the Waste Removal Services sector [1] Group 1: Company Rankings and Analyst Outlook - Montrose Environmental has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Waste Management, which has a Zacks Rank of 3 (Hold) [3] - The improving analyst outlook for MEG suggests a stronger potential for value investors [3] Group 2: Valuation Metrics - MEG has a forward P/E ratio of 17.40, significantly lower than WM's forward P/E of 26.28, indicating that MEG may be undervalued [5] - The PEG ratio for MEG is 0.91, while WM's PEG ratio is 2.44, further suggesting that MEG is a more attractive investment based on expected earnings growth [5] - MEG's P/B ratio stands at 1.98, compared to WM's P/B of 9.22, reinforcing MEG's position as the superior value option [6] - Overall, MEG has earned a Value grade of B, while WM has a Value grade of C, highlighting MEG's stronger valuation metrics [6]