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FLS or NDSN: Which Is the Better Value Stock Right Now?
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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Flowserve (FLS - Free Report) and Nordson (NDSN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Flowserve has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FLS likely has seen a stronger improvement to its earnings outlook than NDSN has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
FLS currently has a forward P/E ratio of 19.03, while NDSN has a forward P/E of 20.64. We also note that FLS has a PEG ratio of 1.33. 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. NDSN currently has a PEG ratio of 1.59.
Another notable valuation metric for FLS is its P/B ratio of 3.61. 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, NDSN has a P/B of 4.3.
Based on these metrics and many more, FLS holds a Value grade of B, while NDSN has a Value grade of D.
FLS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FLS is likely the superior value option right now.
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FLS or NDSN: Which Is the Better Value Stock Right Now?
Investors interested in Manufacturing - General Industrial stocks are likely familiar with Flowserve (FLS - Free Report) and Nordson (NDSN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Flowserve has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that FLS likely has seen a stronger improvement to its earnings outlook than NDSN has recently. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
FLS currently has a forward P/E ratio of 19.03, while NDSN has a forward P/E of 20.64. We also note that FLS has a PEG ratio of 1.33. 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. NDSN currently has a PEG ratio of 1.59.
Another notable valuation metric for FLS is its P/B ratio of 3.61. 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, NDSN has a P/B of 4.3.
Based on these metrics and many more, FLS holds a Value grade of B, while NDSN has a Value grade of D.
FLS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FLS is likely the superior value option right now.