When looking for value opportunities among capital-intensive businesses, investors could be interested in stocks with price-to-tangible book value ratios that are more appealing than their respective industry medians.
The price-to-tangible book value ratio is preferred to the price-book ratio for these publicly traded companies since the appraisal of their business mainly derives from tangible assets.
Olympic Steel
The first stock that meets the criteria is Olympic Steel Inc. (ZEUS, Financial), a Bedford Heights, Ohio-based steel company.
The company has a price-to-tangible book value ratio of approximately 0.75, which is more appealing than the industry median of 1.19 and ranks higher than 72% of the 569 competitors that operate in the steel industry.
The share price was approximately $24.62 at close on Feb. 18. The tangible book value per share was approximately $32.70 as of the September 2021 quarter.
The stock has a market capitalization of $272.72 million and a 52-week range of $16 to $40.
GuruFocus assigned a score of 5 out of 10 to the company's financial strength and a 4 out of 10 rating for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $27.25 per share.
EQT
The second stock that makes the cut is EQT Corp. (EQT, Financial), a Pittsburgh-based producer of natural gas, natural gas liquids and crude oil.
The company has a price-to-tangible book value ratio of approximately 0.84, which is more appealing than the industry median of 1.47, ranking higher than 73% of 940 companies that operate in the oil and gas industry.
The stock closed at $22.32 per share on Feb. 18, while the tangible book value per share was $26.65 as of the December 2021 quarter.
The stock has a market capitalization of $8.39 billion and a 52-week range of $15.71 to $24.835.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $31.43 per share.
ATN International
The third stock that qualifies is ATN International Inc. (ATNI, Financial), a Beverly, Massachusetts-based telecommunication services provider in the U.S., the Caribbean and Bermuda. Through its renewable energy segment, the company also provides distributed generation solar power to commercial customers and several industries in Massachusetts.
The company has a price-to-tangible book value ratio of approximately 1.37, which is more appealing than the industry median of 3.11, ranking better than 79% of 286 companies that operate in the telecommunication services industry.
The stock was trading at $34.67 per share at close on Feb. 18, while the tangible book value per share was $25.25 as of the September 2021 quarter.
The stock has a market capitalization of $548.61 million and a 52-week range of $33.01 to $52.65.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability.
On Wall Street, the stock has two buy and two hold recommendation ratings. The average target price is $66 per share.
Safe Bulkers
The fourth stock that qualifies is Safe Bulkers Inc. (SB, Financial), a Monaco-based owner and operator of a fleet of 43 dry bulk vessels for transporting various commodities, including coal, grain and iron ore.
The company has a price-to-tangible book value ratio of 0.85, which is more appealing than the industry median of 1.62, ranking better than 76% of 833 companies that operate in the transportation industry.
The stock was trading at $4.31 per share at close on Feb. 18, while the tangible book value per share was $5.07 as of the third quarter of 2021.
The stock has a market capitalization of $524.27 million and a 52-week range of $2.12 to $5.44.
GuruFocus assigned a score of 4 out of 10 for the company's financial strength and a 6 out of 10 rating for its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $5.34 per share.
