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Investors looking for stocks in the Transportation – Shipping sector might want to consider either Hoegh LNG (HMLP) or Kirby (KEX). But which of these two stocks offers value investors a better bang for their buck right now? We’ll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Hoegh LNG is sporting a Zacks Rank of #2 (Buy), while Kirby has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that HMLP has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
HMLP currently has a forward P/E ratio of 3.41, while KEX has a forward P/E of 93.56. We also note that HMLP has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. KEX currently has a PEG ratio of 7.80.
Another notable valuation metric for HMLP is its P/B ratio of 0.46. The P/B ratio pits a stock’s market value against its book value, which is defined as total assets minus total liabilities. For comparison, KEX has a P/B of 1.16.
These are just a few of the metrics contributing to HMLP’s Value grade of A and KEX’s Value grade of C.
HMLP sticks out from KEX in both our Zacks Rank and Style Scores models, so value investors will likely feel that HMLP is the better option right now.
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Hoegh LNG Partners LP (HMLP): Free Stock Analysis Report
Kirby Corporation (KEX): Free Stock Analysis Report
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