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POWL or KNYJY: Which Is the Better Value Stock Right Now?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Powell Industries (POWL - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Powell Industries has a Zacks Rank of #1 (Strong Buy), while Kone Oyj Unsponsored ADR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that POWL likely has seen a stronger improvement to its earnings outlook than KNYJY has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
POWL currently has a forward P/E ratio of 16.72, while KNYJY has a forward P/E of 22.08. We also note that POWL has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KNYJY currently has a PEG ratio of 2.08.
Another notable valuation metric for POWL is its P/B ratio of 4.12. 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, KNYJY has a P/B of 9.50.
These are just a few of the metrics contributing to POWL's Value grade of B and KNYJY's Value grade of C.
POWL stands above KNYJY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that POWL is the superior value option right now.
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POWL or KNYJY: Which Is the Better Value Stock Right Now?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Powell Industries (POWL - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Powell Industries has a Zacks Rank of #1 (Strong Buy), while Kone Oyj Unsponsored ADR has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that POWL likely has seen a stronger improvement to its earnings outlook than KNYJY has recently. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
POWL currently has a forward P/E ratio of 16.72, while KNYJY has a forward P/E of 22.08. We also note that POWL has a PEG ratio of 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KNYJY currently has a PEG ratio of 2.08.
Another notable valuation metric for POWL is its P/B ratio of 4.12. 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, KNYJY has a P/B of 9.50.
These are just a few of the metrics contributing to POWL's Value grade of B and KNYJY's Value grade of C.
POWL stands above KNYJY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that POWL is the superior value option right now.