Back to top

Image: Bigstock

LXFR or IEX: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Manufacturing - General Industrial stocks are likely familiar with Luxfer (LXFR - Free Report) and Idex (IEX - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Both Luxfer and Idex have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.

LXFR currently has a forward P/E ratio of 14.06, while IEX has a forward P/E of 33.06. We also note that LXFR has a PEG ratio of 1.08. 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. IEX currently has a PEG ratio of 3.31.

Another notable valuation metric for LXFR is its P/B ratio of 1.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, IEX has a P/B of 5.38.

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

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


IDEX Corporation (IEX) - free report >>

Luxfer Holdings PLC (LXFR) - free report >>

Published in