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IHICY vs. B: Which Stock Is the Better Value Option?

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Investors interested in Manufacturing - General Industrial stocks are likely familiar with IHI CORP (IHICY - Free Report) and Barnes Group (B - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both IHI CORP and Barnes Group have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

IHICY currently has a forward P/E ratio of 0.59, while B has a forward P/E of 15.77. We also note that IHICY has a PEG ratio of 0.06. 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. B currently has a PEG ratio of 2.25.

Another notable valuation metric for IHICY is its P/B ratio of 1.38. 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, B has a P/B of 2.37.

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

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


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