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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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Leidos is sporting a Zacks Rank of #2 (Buy), while Northrop Grumman has a Zacks Rank of #3 (Hold). This means that LDOS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LDOS currently has a forward P/E ratio of 15.53, while NOC has a forward P/E of 21.08. We also note that LDOS has a PEG ratio of 1.91. 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. NOC currently has a PEG ratio of 8.71.
Another notable valuation metric for LDOS is its P/B ratio of 3.57. 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 4.54.
Based on these metrics and many more, LDOS holds a Value grade of A, while NOC has a Value grade of C.
LDOS sticks out from NOC in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better 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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Leidos is sporting a Zacks Rank of #2 (Buy), while Northrop Grumman has a Zacks Rank of #3 (Hold). This means that LDOS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LDOS currently has a forward P/E ratio of 15.53, while NOC has a forward P/E of 21.08. We also note that LDOS has a PEG ratio of 1.91. 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. NOC currently has a PEG ratio of 8.71.
Another notable valuation metric for LDOS is its P/B ratio of 3.57. 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 4.54.
Based on these metrics and many more, LDOS holds a Value grade of A, while NOC has a Value grade of C.
LDOS sticks out from NOC in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better option right now.