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EMR or KNYJY: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Emerson Electric and Kone Oyj Unsponsored ADR are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
EMR currently has a forward P/E ratio of 20.57, while KNYJY has a forward P/E of 27.50. We also note that EMR has a PEG ratio of 2.26. 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. KNYJY currently has a PEG ratio of 2.27.
Another notable valuation metric for EMR is its P/B ratio of 2.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNYJY has a P/B of 9.35.
These metrics, and several others, help EMR earn a Value grade of B, while KNYJY has been given a Value grade of C.
Both EMR and KNYJY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.
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EMR or KNYJY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Emerson Electric and Kone Oyj Unsponsored ADR are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
EMR currently has a forward P/E ratio of 20.57, while KNYJY has a forward P/E of 27.50. We also note that EMR has a PEG ratio of 2.26. 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. KNYJY currently has a PEG ratio of 2.27.
Another notable valuation metric for EMR is its P/B ratio of 2.84. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNYJY has a P/B of 9.35.
These metrics, and several others, help EMR earn a Value grade of B, while KNYJY has been given a Value grade of C.
Both EMR and KNYJY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.