6 Stocks Trading With Low Price-Sales Ratios

Vodafone makes the list

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Jan 14, 2020
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According to the GuruFocus All-In-One Screener, a Premium feature, the following companies were trading with low price-sales ratios as of Jan. 14.

Applied Materials

Applied Materials Inc. (AMAT, Financial) was trading around $62.5 per share with a price-sales ratio of 4.03 and a price-earnings ratio of 21.78.

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The company, which operates in the semiconductors industry, has a market cap of $56.57 billion. The stock has risen at an annualized rate of 16.60% over the past decade.

The discounted cash flow calculator gives the company a fair value of $30.61, suggesting it is overpriced by 101%, while the Peter Lynch value gives the stock a fair price of $42.9.

The company's largest guru shareholder is Chris Davis (Trades, Portfolio) with 1.68% of outstanding shares, followed by tje Parnassus Endeavor Fund (Trades, Portfolio) with 0.65%, PRIMECAP Management (Trades, Portfolio) with 0.54% and Al Gore (Trades, Portfolio) with 0.50%.

Marsh & McLennan Companies

As of Jan 14, Marsh & McLennan Companies Inc. (MMC, Financial) was trading around $112 per share with a price-sales ratio of 3.55 and a price-earnings ratio of 38.13.

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The professional services company, which operates in the areas of insurance brokerage, risk management, reinsurance talent management, investment advisory and management consulting, has a market cap of $56.52 billion. The stock has risen at an annualized rate of 18.94% over the last 10 years.

The DCF calculator gives the stock a fair value of $67.29, suggesting it is overpriced by 66%. The Peter Lynch fair value gives the stock a fair price of $44.10.

With 1.69% of outstanding shares, PRIMECAP Management is the company's largest guru shareholder, followed by Pioneer Investments (Trades, Portfolio) with 0.76%, Diamond Hill Capital (Trades, Portfolio) with 0.24%, the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.15% and Tom Gayner (Trades, Portfolio) with 0.12%.

Las Vegas Sands

Las Vegas Sands Corp. (LVS, Financial) was trading around $72.16 as of Jan. 14 with a price-sales ratio of 4.08 and a price-earnings ratio of 29.33.

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The company, which operates in the travel and leisure industry, has a market cap of $55.42 billion. The stock has risen at an annualized rate of 17.76% over the past decade.

The DCF calculator gives the company a fair value of $26.33, suggesting it is overpriced with a 174% margin of safety. The Peter Lynch earnings line gives the stock a fair price of $36.9.

The company's largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 0.43% of outstanding shares, followed by the T Rowe Price Equity Income Fund with 0.41%, PRIMECAP Management with 0.11%, Steven Cohen (Trades, Portfolio) with 0.10% and Pioneer Investments with 0.05%.

Ecolab

Ecolab Inc. (ECL, Financial) was trading around $191.41 with a price-sales ratio of 3.77 and a price-earnings ratio of 36.74.

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The company has a market cap of $55.17 billion. The stock has increased at an annualized rate of 15.77% over the last 10 years.

The DCF calculator gives the company a fair value of $89.28, suggesting it is overpriced by 114%. The Peter Lynch fair value gives the stock a fair price of $78.15.

With 1.51% of outstanding shares, Bill Gates (Trades, Portfolio)’ foundation trust is the company's largest guru shareholder, followed by Mairs and Power (Trades, Portfolio) with 0.61% and Pioneer Investments with 0.47%

Vodafone Group

Vodafone Group PLC (VOD, Financial) was trading around $20.4 as of Jan. 14 with a price-sales ratio of 1.16 and a forward price-earnings ratio of 15.53.

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The company, which operates in the telecommunication services industry, has a market cap of $52.74 billion. The stock has risen at an annualized rate of 5.91% over the past decade.

The company's largest guru shareholder is Simons’ firm with 1.10% of outstanding shares, followed by Hotchkis & Wiley with 0.79% and Sarah Ketterer (Trades, Portfolio) with 0.04%.

General Dynamics

General Dynamics Corp. (GD, Financial) was trading around $181 as of Jan.14, with a price-sales ratio of 1.36 and a price-earnings ratio of 15.70.

The manufacturer of submarines and Gulfstream business jets has a market cap of $52.40 billion. The stock has climbed at an annualized rate of 11.30% over the last 10 years.

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The DCF calculator gives the company a fair value of $123.5, suggesting it is overpriced by 46%. The Peter Lynch fair value gives the stock a fair price of $173.1.

With 0.90% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by PRIMECAP Management with 0.31% and Gayner with 0.13%.

Disclosure: I do not own any stocks mentioned.

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