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EMR vs. ABBNY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and ABB (ABBNY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Emerson Electric and ABB are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EMR currently has a forward P/E ratio of 21.27, while ABBNY has a forward P/E of 22.81. We also note that EMR has a PEG ratio of 2.34. 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. ABBNY currently has a PEG ratio of 3.68.
Another notable valuation metric for EMR is its P/B ratio of 2.94. 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, ABBNY has a P/B of 5.86.
Based on these metrics and many more, EMR holds a Value grade of B, while ABBNY has a Value grade of C.
Both EMR and ABBNY 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 vs. ABBNY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and ABB (ABBNY - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Emerson Electric and ABB are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EMR currently has a forward P/E ratio of 21.27, while ABBNY has a forward P/E of 22.81. We also note that EMR has a PEG ratio of 2.34. 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. ABBNY currently has a PEG ratio of 3.68.
Another notable valuation metric for EMR is its P/B ratio of 2.94. 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, ABBNY has a P/B of 5.86.
Based on these metrics and many more, EMR holds a Value grade of B, while ABBNY has a Value grade of C.
Both EMR and ABBNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.