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POWL vs. ETN: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Powell Industries (POWL - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Powell Industries and Eaton are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
POWL currently has a forward P/E ratio of 18.33, while ETN has a forward P/E of 32.23. We also note that POWL has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ETN currently has a PEG ratio of 2.75.
Another notable valuation metric for POWL is its P/B ratio of 4.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 6.92.
Based on these metrics and many more, POWL holds a Value grade of B, while ETN has a Value grade of D.
Both POWL and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that POWL is the superior value option right now.
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POWL vs. ETN: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Powell Industries (POWL - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Powell Industries and Eaton are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 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.
POWL currently has a forward P/E ratio of 18.33, while ETN has a forward P/E of 32.23. We also note that POWL has a PEG ratio of 1.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ETN currently has a PEG ratio of 2.75.
Another notable valuation metric for POWL is its P/B ratio of 4.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 6.92.
Based on these metrics and many more, POWL holds a Value grade of B, while ETN has a Value grade of D.
Both POWL and ETN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that POWL is the superior value option right now.