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

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Investors interested in stocks from the Manufacturing - General Industrial sector have probably already heard of Luxfer (LXFR - 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.

Both Luxfer and Nordson have a Zacks Rank of # 2 (Buy) right now. 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. However, value investors will care about much more than just this.

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.

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.

LXFR currently has a forward P/E ratio of 10.71, while NDSN has a forward P/E of 21.54. We also note that LXFR has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NDSN currently has a PEG ratio of 1.66.

Another notable valuation metric for LXFR is its P/B ratio of 2.10. 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 5.27.

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


In-Depth Zacks Research for the Tickers Above


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Nordson Corporation (NDSN) - free report >>

Luxfer Holdings PLC (LXFR) - free report >>

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