We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PLOW vs. KNRRY: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Automotive - Replacement Parts sector have probably already heard of Douglas Dynamics (PLOW - Free Report) and Knorr-Bremse - Unsponsored ADR (KNRRY - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Douglas Dynamics has a Zacks Rank of #1 (Strong Buy), while Knorr-Bremse - Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PLOW has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PLOW currently has a forward P/E ratio of 16.13, while KNRRY has a forward P/E of 26.56. We also note that PLOW has a PEG ratio of 0.90. 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. KNRRY currently has a PEG ratio of 1.07.
Another notable valuation metric for PLOW is its P/B ratio of 3.9. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNRRY has a P/B of 4.9.
Based on these metrics and many more, PLOW holds a Value grade of B, while KNRRY has a Value grade of C.
PLOW has seen stronger estimate revision activity and sports more attractive valuation metrics than KNRRY, so it seems like value investors will conclude that PLOW is the superior option right now.
View the Zacks #1 Rank List
Image: Bigstock
PLOW vs. KNRRY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Automotive - Replacement Parts sector have probably already heard of Douglas Dynamics (PLOW - Free Report) and Knorr-Bremse - Unsponsored ADR (KNRRY - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Douglas Dynamics has a Zacks Rank of #1 (Strong Buy), while Knorr-Bremse - Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PLOW has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PLOW currently has a forward P/E ratio of 16.13, while KNRRY has a forward P/E of 26.56. We also note that PLOW has a PEG ratio of 0.90. 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. KNRRY currently has a PEG ratio of 1.07.
Another notable valuation metric for PLOW is its P/B ratio of 3.9. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, KNRRY has a P/B of 4.9.
Based on these metrics and many more, PLOW holds a Value grade of B, while KNRRY has a Value grade of C.
PLOW has seen stronger estimate revision activity and sports more attractive valuation metrics than KNRRY, so it seems like value investors will conclude that PLOW is the superior option right now.