CR vs. EPOKY: Which Stock Should Value Investors Buy Now?

CR EPOKY

Investors interested in Manufacturing - General Industrial stocks are likely familiar with Crane (CR - Free Report) and Epiroc Aktiebolag Unsponsored ADR (EPOKY - 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.

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.

Right now, both Crane and Epiroc Aktiebolag Unsponsored ADR are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

CR currently has a forward P/E ratio of 20.49, while EPOKY has a forward P/E of 25.27. We also note that CR has a PEG ratio of 2.75. 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. EPOKY currently has a PEG ratio of 4.50.

Another notable valuation metric for CR is its P/B ratio of 2.83. 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, EPOKY has a P/B of 7.69.

Based on these metrics and many more, CR holds a Value grade of B, while EPOKY has a Value grade of D.

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

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