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SXI vs. NDSN: Which Stock Should Value Investors Buy 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 presents investors with the better value opportunity right now? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Standex International and Nordson are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle 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 30.28. We also note that SXI has a PEG ratio of 1.29. 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. NDSN currently has a PEG ratio of 2.33.

Another notable valuation metric for SXI is its P/B ratio of 2.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NDSN has a P/B of 6.78.

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

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


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