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ENS vs. ETN: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - 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.
EnerSys and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ETN has recently. However, value investors will care about much more than just this.
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.
ENS currently has a forward P/E ratio of 18.45, while ETN has a forward P/E of 20.69. We also note that ENS has a PEG ratio of 1.68. 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. ETN currently has a PEG ratio of 1.88.
Another notable valuation metric for ENS is its P/B ratio of 2.41. 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, ETN has a P/B of 3.98.
These are just a few of the metrics contributing to ENS's Value grade of B and ETN's Value grade of C.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that ENS is the superior option right now.
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ENS vs. ETN: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - 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.
EnerSys and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ETN has recently. However, value investors will care about much more than just this.
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.
ENS currently has a forward P/E ratio of 18.45, while ETN has a forward P/E of 20.69. We also note that ENS has a PEG ratio of 1.68. 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. ETN currently has a PEG ratio of 1.88.
Another notable valuation metric for ENS is its P/B ratio of 2.41. 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, ETN has a P/B of 3.98.
These are just a few of the metrics contributing to ENS's Value grade of B and ETN's Value grade of C.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that ENS is the superior option right now.