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ENS vs. ETN: 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 EnerSys (ENS - Free Report) and Eaton (ETN - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, EnerSys is sporting a Zacks Rank of #1 (Strong Buy), while Eaton has 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 ENS has an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
ENS currently has a forward P/E ratio of 11.30, while ETN has a forward P/E of 24.58. We also note that ENS has a PEG ratio of 0.81. 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. ETN currently has a PEG ratio of 2.09.
Another notable valuation metric for ENS is its P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ETN has a P/B of 5.33.
Based on these metrics and many more, ENS holds a Value grade of B, while ETN has a Value grade of C.
ENS sticks out from ETN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ENS is the better option right now.
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ENS vs. ETN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of EnerSys (ENS - Free Report) and Eaton (ETN - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, EnerSys is sporting a Zacks Rank of #1 (Strong Buy), while Eaton has 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 ENS has an improving earnings outlook. But this is only part of the picture for value investors.
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.
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.
ENS currently has a forward P/E ratio of 11.30, while ETN has a forward P/E of 24.58. We also note that ENS has a PEG ratio of 0.81. 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. ETN currently has a PEG ratio of 2.09.
Another notable valuation metric for ENS is its P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ETN has a P/B of 5.33.
Based on these metrics and many more, ENS holds a Value grade of B, while ETN has a Value grade of C.
ENS sticks out from ETN in both our Zacks Rank and Style Scores models, so value investors will likely feel that ENS is the better option right now.