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RRX or ETN: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Regal Beloit (RRX - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Regal Beloit and Eaton are sporting 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 tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
RRX currently has a forward P/E ratio of 13.50, while ETN has a forward P/E of 18.24. We also note that RRX has a PEG ratio of 1.35. 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. ETN currently has a PEG ratio of 1.66.
Another notable valuation metric for RRX is its P/B ratio of 1.53. 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, ETN has a P/B of 3.34.
Based on these metrics and many more, RRX holds a Value grade of B, while ETN has a Value grade of C.
Both RRX and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RRX is the superior value option right now.
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RRX or ETN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Regal Beloit (RRX - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Regal Beloit and Eaton are sporting 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 tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
RRX currently has a forward P/E ratio of 13.50, while ETN has a forward P/E of 18.24. We also note that RRX has a PEG ratio of 1.35. 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. ETN currently has a PEG ratio of 1.66.
Another notable valuation metric for RRX is its P/B ratio of 1.53. 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, ETN has a P/B of 3.34.
Based on these metrics and many more, RRX holds a Value grade of B, while ETN has a Value grade of C.
Both RRX and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RRX is the superior value option right now.