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B or NDSN: Which Is the Better Value Stock Right Now?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Barnes Group (B - Free Report) and Nordson (NDSN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Barnes Group has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold). This means that B's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
B currently has a forward P/E ratio of 18.51, while NDSN has a forward P/E of 25.61. We also note that B has a PEG ratio of 1.85. 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 1.97.
Another notable valuation metric for B is its P/B ratio of 1.49. 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, NDSN has a P/B of 5.30.
These are just a few of the metrics contributing to B's Value grade of B and NDSN's Value grade of D.
B has seen stronger estimate revision activity and sports more attractive valuation metrics than NDSN, so it seems like value investors will conclude that B is the superior option right now.
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B or NDSN: Which Is the Better Value Stock Right Now?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Barnes Group (B - Free Report) and Nordson (NDSN - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Barnes Group has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold). This means that B's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
B currently has a forward P/E ratio of 18.51, while NDSN has a forward P/E of 25.61. We also note that B has a PEG ratio of 1.85. 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 1.97.
Another notable valuation metric for B is its P/B ratio of 1.49. 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, NDSN has a P/B of 5.30.
These are just a few of the metrics contributing to B's Value grade of B and NDSN's Value grade of D.
B has seen stronger estimate revision activity and sports more attractive valuation metrics than NDSN, so it seems like value investors will conclude that B is the superior option right now.