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EADSY or CW: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Airbus SE - Unsponsored ADR (EADSY - Free Report) and Curtiss-Wright (CW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Airbus SE - Unsponsored ADR and Curtiss-Wright are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that EADSY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.

EADSY currently has a forward P/E ratio of 24.01, while CW has a forward P/E of 47.51. We also note that EADSY has a PEG ratio of 1.91. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CW currently has a PEG ratio of 3.34.

Another notable valuation metric for EADSY is its P/B ratio of 5.36. 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, CW has a P/B of 10.1.

These are just a few of the metrics contributing to EADSY's Value grade of B and CW's Value grade of F.

EADSY sticks out from CW in both our Zacks Rank and Style Scores models, so value investors will likely feel that EADSY is the better option right now.

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