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CFX vs. B: Which Stock Should Value Investors Buy 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 is more attractive to value investors? We'll need to take a closer look to find out.

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.

Currently, Colfax has a Zacks Rank of #2 (Buy), while Barnes Group has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that CFX likely has seen a stronger improvement to its earnings outlook than B has recently. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

CFX currently has a forward P/E ratio of 9.33, while B has a forward P/E of 16.93. We also note that CFX has a PEG ratio of 0.64. 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 2.42.

Another notable valuation metric for CFX is its P/B ratio of 0.81. 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 2.50.

These are just a few of the metrics contributing to CFX's Value grade of A and B's Value grade of D.

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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