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SXI or IR: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Standex International (SXI - Free Report) or Ingersoll Rand (IR - Free Report) . 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both Standex International and Ingersoll Rand have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SXI currently has a forward P/E ratio of 15.73, while IR has a forward P/E of 29.83. We also note that SXI has a PEG ratio of 1.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IR currently has a PEG ratio of 3.76.

Another notable valuation metric for SXI is its P/B ratio of 1.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, IR has a P/B of 1.80.

Based on these metrics and many more, SXI holds a Value grade of B, while IR has a Value grade of F.

Both SXI and IR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SXI is the superior value option right now.


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Ingersoll Rand Inc. (IR) - free report >>

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