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ENS or EMR: Which Is the Better Value Stock Right Now?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS - Free Report) and Emerson Electric (EMR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
EnerSys has a Zacks Rank of #1 (Strong Buy), while Emerson Electric has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than EMR has recently. But this is just one piece of the puzzle 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.
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.
ENS currently has a forward P/E ratio of 16.48, while EMR has a forward P/E of 18.11. We also note that ENS has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EMR currently has a PEG ratio of 2.04.
Another notable valuation metric for ENS is its P/B ratio of 2.96. 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, EMR has a P/B of 4.67.
These metrics, and several others, help ENS earn a Value grade of A, while EMR has been given a Value grade of C.
ENS stands above EMR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENS is the superior value option right now.
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ENS or EMR: Which Is the Better Value Stock Right Now?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS - Free Report) and Emerson Electric (EMR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
EnerSys has a Zacks Rank of #1 (Strong Buy), while Emerson Electric has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than EMR has recently. But this is just one piece of the puzzle 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.
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.
ENS currently has a forward P/E ratio of 16.48, while EMR has a forward P/E of 18.11. We also note that ENS has a PEG ratio of 1.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EMR currently has a PEG ratio of 2.04.
Another notable valuation metric for ENS is its P/B ratio of 2.96. 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, EMR has a P/B of 4.67.
These metrics, and several others, help ENS earn a Value grade of A, while EMR has been given a Value grade of C.
ENS stands above EMR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENS is the superior value option right now.