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ENS vs. ETN: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This means that ENS'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 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.
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 13.73, while ETN has a forward P/E of 27.85. We also note that ENS has a PEG ratio of 0.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETN currently has a PEG ratio of 2.49.
Another notable valuation metric for ENS is its P/B ratio of 2.83. The P/B ratio is used to compare a stock's market value with 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, ENS holds a Value grade of B, while ETN has a Value grade of D.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that ENS is the superior option right now.
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ENS vs. ETN: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Eaton (ETN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, EnerSys is sporting a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold). This means that ENS'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 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.
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 13.73, while ETN has a forward P/E of 27.85. We also note that ENS has a PEG ratio of 0.92. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ETN currently has a PEG ratio of 2.49.
Another notable valuation metric for ENS is its P/B ratio of 2.83. The P/B ratio is used to compare a stock's market value with 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, ENS holds a Value grade of B, while ETN has a Value grade of D.
ENS has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that ENS is the superior option right now.