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LDOS vs. NOC: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Aerospace - Defense sector might want to consider either Leidos (LDOS - Free Report) or Northrop Grumman (NOC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Leidos has a Zacks Rank of #2 (Buy), while Northrop Grumman has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LDOS likely has seen a stronger improvement to its earnings outlook than NOC has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
LDOS currently has a forward P/E ratio of 14.69, while NOC has a forward P/E of 20.31. We also note that LDOS has a PEG ratio of 1.81. 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. NOC currently has a PEG ratio of 8.39.
Another notable valuation metric for LDOS is its P/B ratio of 3.35. 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, NOC has a P/B of 4.37.
These are just a few of the metrics contributing to LDOS's Value grade of A and NOC's Value grade of C.
LDOS stands above NOC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LDOS is the superior value option right now.
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LDOS vs. NOC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Aerospace - Defense sector might want to consider either Leidos (LDOS - Free Report) or Northrop Grumman (NOC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Leidos has a Zacks Rank of #2 (Buy), while Northrop Grumman has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that LDOS likely has seen a stronger improvement to its earnings outlook than NOC has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
LDOS currently has a forward P/E ratio of 14.69, while NOC has a forward P/E of 20.31. We also note that LDOS has a PEG ratio of 1.81. 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. NOC currently has a PEG ratio of 8.39.
Another notable valuation metric for LDOS is its P/B ratio of 3.35. 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, NOC has a P/B of 4.37.
These are just a few of the metrics contributing to LDOS's Value grade of A and NOC's Value grade of C.
LDOS stands above NOC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LDOS is the superior value option right now.