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SSUMY vs. HON: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and Honeywell International Inc. (HON - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Sumitomo Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SSUMY has an improving earnings 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SSUMY currently has a forward P/E ratio of 5.07, while HON has a forward P/E of 24.48. We also note that SSUMY has a PEG ratio of 1.11. 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. HON currently has a PEG ratio of 2.87.
Another notable valuation metric for SSUMY is its P/B ratio of 0.75. 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, HON has a P/B of 7.84.
Based on these metrics and many more, SSUMY holds a Value grade of A, while HON has a Value grade of D.
SSUMY stands above HON thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSUMY is the superior value option right now.
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SSUMY vs. HON: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Diversified Operations sector have probably already heard of Sumitomo Corp. (SSUMY - Free Report) and Honeywell International Inc. (HON - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Sumitomo Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SSUMY has an improving earnings 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
SSUMY currently has a forward P/E ratio of 5.07, while HON has a forward P/E of 24.48. We also note that SSUMY has a PEG ratio of 1.11. 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. HON currently has a PEG ratio of 2.87.
Another notable valuation metric for SSUMY is its P/B ratio of 0.75. 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, HON has a P/B of 7.84.
Based on these metrics and many more, SSUMY holds a Value grade of A, while HON has a Value grade of D.
SSUMY stands above HON thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SSUMY is the superior value option right now.