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CFX or B: Which Is the Better Value Stock Right Now?

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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Colfax and Barnes Group (B - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Colfax and Barnes Group are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CFX is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

CFX currently has a forward P/E ratio of 15.12, while B has a forward P/E of 20.99. We also note that CFX has a PEG ratio of 1.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. B currently has a PEG ratio of 5.25.

Another notable valuation metric for CFX is its P/B ratio of 1.14. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, B has a P/B of 2.94.

Based on these metrics and many more, CFX holds a Value grade of B, while B has a Value grade of C.

CFX sticks out from B in both our Zacks Rank and Style Scores models, so value investors will likely feel that CFX is the better option right now.


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