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VWDRY vs. KNYJY: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Vestas Wind Systems AS (VWDRY - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Vestas Wind Systems AS is sporting a Zacks Rank of #2 (Buy), while Kone Oyj Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that VWDRY'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 are also interested in a number of tried-and-true valuation metrics that help show when 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.

VWDRY currently has a forward P/E ratio of 28.31, while KNYJY has a forward P/E of 30.14. We also note that VWDRY has a PEG ratio of 0.63. 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. KNYJY currently has a PEG ratio of 2.68.

Another notable valuation metric for VWDRY is its P/B ratio of 7.02. 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, KNYJY has a P/B of 10.52.

Based on these metrics and many more, VWDRY holds a Value grade of B, while KNYJY has a Value grade of D.

VWDRY stands above KNYJY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VWDRY is the superior value option right now.


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