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RBC vs. ABB: Which Stock Is the Better Value Option?
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Investors interested in Manufacturing - Electronics stocks are likely familiar with Regal Beloit (RBC - Free Report) and ABB . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Regal Beloit and ABB are both sporting a Zacks Rank of # 2 (Buy) right now. 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. But this is just one piece of the puzzle 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.
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.
RBC currently has a forward P/E ratio of 22.21, while ABB has a forward P/E of 32.46. We also note that RBC has a PEG ratio of 2.22. 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. ABB currently has a PEG ratio of 5.24.
Another notable valuation metric for RBC is its P/B ratio of 1.71. 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, ABB has a P/B of 4.48.
These metrics, and several others, help RBC earn a Value grade of A, while ABB has been given a Value grade of C.
Both RBC and ABB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RBC is the superior value option right now.
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RBC vs. ABB: Which Stock Is the Better Value Option?
Investors interested in Manufacturing - Electronics stocks are likely familiar with Regal Beloit (RBC - Free Report) and ABB . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Regal Beloit and ABB are both sporting a Zacks Rank of # 2 (Buy) right now. 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. But this is just one piece of the puzzle 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.
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.
RBC currently has a forward P/E ratio of 22.21, while ABB has a forward P/E of 32.46. We also note that RBC has a PEG ratio of 2.22. 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. ABB currently has a PEG ratio of 5.24.
Another notable valuation metric for RBC is its P/B ratio of 1.71. 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, ABB has a P/B of 4.48.
These metrics, and several others, help RBC earn a Value grade of A, while ABB has been given a Value grade of C.
Both RBC and ABB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RBC is the superior value option right now.