KUBTY or LNN: Which Is the Better Value Stock Right Now?

LNN KUBTY

Investors interested in Manufacturing - Farm Equipment stocks are likely familiar with Kubota Corp. (KUBTY - Free Report) and Lindsay (LNN - 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.

Kubota Corp. and Lindsay are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KUBTY is likely seeing its earnings outlook improve to a greater extent. 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 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.

KUBTY currently has a forward P/E ratio of 11.62, while LNN has a forward P/E of 19.59. We also note that KUBTY has a PEG ratio of 0.90. 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. LNN currently has a PEG ratio of 1.03.

Another notable valuation metric for KUBTY is its P/B ratio of 0.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LNN has a P/B of 2.96.

These are just a few of the metrics contributing to KUBTY's Value grade of B and LNN's Value grade of C.

KUBTY has seen stronger estimate revision activity and sports more attractive valuation metrics than LNN, so it seems like value investors will conclude that KUBTY is the superior option right now.

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