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LXFR vs. SXI: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Luxfer (LXFR - Free Report) and Standex International (SXI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Luxfer has a Zacks Rank of #2 (Buy), while Standex International has a Zacks Rank of #3 (Hold). This means that LXFR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
LXFR currently has a forward P/E ratio of 13.71, while SXI has a forward P/E of 23.49. We also note that LXFR has a PEG ratio of 1.71. 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. SXI currently has a PEG ratio of 2.61.
Another notable valuation metric for LXFR is its P/B ratio of 1.59. 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, SXI has a P/B of 3.47.
These are just a few of the metrics contributing to LXFR's Value grade of A and SXI's Value grade of D.
LXFR sticks out from SXI in both our Zacks Rank and Style Scores models, so value investors will likely feel that LXFR is the better option right now.
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LXFR vs. SXI: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Luxfer (LXFR - Free Report) and Standex International (SXI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Currently, Luxfer has a Zacks Rank of #2 (Buy), while Standex International has a Zacks Rank of #3 (Hold). This means that LXFR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
LXFR currently has a forward P/E ratio of 13.71, while SXI has a forward P/E of 23.49. We also note that LXFR has a PEG ratio of 1.71. 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. SXI currently has a PEG ratio of 2.61.
Another notable valuation metric for LXFR is its P/B ratio of 1.59. 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, SXI has a P/B of 3.47.
These are just a few of the metrics contributing to LXFR's Value grade of A and SXI's Value grade of D.
LXFR sticks out from SXI in both our Zacks Rank and Style Scores models, so value investors will likely feel that LXFR is the better option right now.