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FLS vs. SXI: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Flowserve (FLS - Free Report) and Standex International (SXI - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Flowserve and Standex International are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.
FLS currently has a forward P/E ratio of 20.25, while SXI has a forward P/E of 20.67. We also note that FLS has a PEG ratio of 0.93. 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. SXI currently has a PEG ratio of 2.30.
Another notable valuation metric for FLS is its P/B ratio of 2.55. 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, SXI has a P/B of 2.71.
These are just a few of the metrics contributing to FLS's Value grade of B and SXI's Value grade of C.
Both FLS and SXI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLS is the superior value option right now.
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FLS vs. SXI: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Flowserve (FLS - Free Report) and Standex International (SXI - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Flowserve and Standex International are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. 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.
FLS currently has a forward P/E ratio of 20.25, while SXI has a forward P/E of 20.67. We also note that FLS has a PEG ratio of 0.93. 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. SXI currently has a PEG ratio of 2.30.
Another notable valuation metric for FLS is its P/B ratio of 2.55. 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, SXI has a P/B of 2.71.
These are just a few of the metrics contributing to FLS's Value grade of B and SXI's Value grade of C.
Both FLS and SXI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLS is the superior value option right now.