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SXI or NDSN: Which Is the Better Value Stock Right Now?

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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Standex International (SXI - Free Report) and Nordson (NDSN - 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.

Standex International and Nordson are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This means that SXI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

SXI currently has a forward P/E ratio of 18.09, while NDSN has a forward P/E of 30.36. We also note that SXI has a PEG ratio of 1.29. 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. NDSN currently has a PEG ratio of 2.34.

Another notable valuation metric for SXI is its P/B ratio of 2.29. 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 6.84.

These metrics, and several others, help SXI earn a Value grade of B, while NDSN has been given a Value grade of C.

SXI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SXI is likely the superior value option right now.


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