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RRX vs. ZWS: 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 Regal Beloit (RRX - Free Report) and Zurn Water (ZWS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 Regal Beloit and Zurn Water 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. 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.
RRX currently has a forward P/E ratio of 14.41, while ZWS has a forward P/E of 29.72. We also note that RRX has a PEG ratio of 1.44. 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. ZWS currently has a PEG ratio of 1.75.
Another notable valuation metric for RRX is its P/B ratio of 1.58. 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, ZWS has a P/B of 2.89.
These are just a few of the metrics contributing to RRX's Value grade of B and ZWS's Value grade of C.
Both RRX and ZWS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RRX is the superior value option right now.
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RRX vs. ZWS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Regal Beloit (RRX - Free Report) and Zurn Water (ZWS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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 Regal Beloit and Zurn Water 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. 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.
RRX currently has a forward P/E ratio of 14.41, while ZWS has a forward P/E of 29.72. We also note that RRX has a PEG ratio of 1.44. 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. ZWS currently has a PEG ratio of 1.75.
Another notable valuation metric for RRX is its P/B ratio of 1.58. 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, ZWS has a P/B of 2.89.
These are just a few of the metrics contributing to RRX's Value grade of B and ZWS's Value grade of C.
Both RRX and ZWS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that RRX is the superior value option right now.