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LXFR vs. NDSN: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Luxfer (LXFR - Free Report) or Nordson (NDSN - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Luxfer and Nordson are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

LXFR currently has a forward P/E ratio of 16.71, while NDSN has a forward P/E of 29.19. We also note that LXFR has a PEG ratio of 1.29. 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. NDSN currently has a PEG ratio of 2.25.

Another notable valuation metric for LXFR is its P/B ratio of 3.36. 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, NDSN has a P/B of 6.57.

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

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


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Nordson Corporation (NDSN) - free report >>

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