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.
KE vs. ROK: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Kimball Electronics (KE - Free Report) and Rockwell Automation (ROK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kimball Electronics and Rockwell Automation are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that KE'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.
KE currently has a forward P/E ratio of 18.63, while ROK has a forward P/E of 33.56. We also note that KE has a PEG ratio of 0.93. 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. ROK currently has a PEG ratio of 2.59.
Another notable valuation metric for KE is its P/B ratio of 1.09. 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, ROK has a P/B of 14.01.
These metrics, and several others, help KE earn a Value grade of A, while ROK has been given a Value grade of D.
KE has seen stronger estimate revision activity and sports more attractive valuation metrics than ROK, so it seems like value investors will conclude that KE is the superior option right now.
View the Zacks #1 Rank List
Image: Bigstock
KE vs. ROK: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Kimball Electronics (KE - Free Report) and Rockwell Automation (ROK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kimball Electronics and Rockwell Automation are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that KE'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.
KE currently has a forward P/E ratio of 18.63, while ROK has a forward P/E of 33.56. We also note that KE has a PEG ratio of 0.93. 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. ROK currently has a PEG ratio of 2.59.
Another notable valuation metric for KE is its P/B ratio of 1.09. 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, ROK has a P/B of 14.01.
These metrics, and several others, help KE earn a Value grade of A, while ROK has been given a Value grade of D.
KE has seen stronger estimate revision activity and sports more attractive valuation metrics than ROK, so it seems like value investors will conclude that KE is the superior option right now.