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BZLFY or HON: Which Is the Better Value Stock Right Now?

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Investors with an interest in Diversified Operations stocks have likely encountered both Bunzl PLC (BZLFY - Free Report) and Honeywell International Inc. (HON - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Bunzl PLC has a Zacks Rank of #1 (Strong Buy), while Honeywell International Inc. has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that BZLFY likely has seen a stronger improvement to its earnings outlook than HON has recently. But this is only part of the picture 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 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.

BZLFY currently has a forward P/E ratio of 16.72, while HON has a forward P/E of 22.67. We also note that BZLFY has a PEG ratio of 0.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HON currently has a PEG ratio of 2.47.

Another notable valuation metric for BZLFY is its P/B ratio of 4.18. 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, HON has a P/B of 7.90.

These metrics, and several others, help BZLFY earn a Value grade of B, while HON has been given a Value grade of D.

BZLFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that BZLFY is likely the superior value option right now.


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