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.
KUBTY or DE: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors with an interest in Manufacturing - Farm Equipment stocks have likely encountered both Kubota Corp. (KUBTY - Free Report) and Deere (DE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Kubota Corp. has a Zacks Rank of #2 (Buy), while Deere has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KUBTY likely has seen a stronger improvement to its earnings outlook than DE has recently. But this is just one piece of the puzzle for value investors.
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.
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.
KUBTY currently has a forward P/E ratio of 15.34, while DE has a forward P/E of 33.36. We also note that KUBTY has a PEG ratio of 2.04. 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. DE currently has a PEG ratio of 2.57.
Another notable valuation metric for KUBTY is its P/B ratio of 1.05. 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, DE has a P/B of 6.
Based on these metrics and many more, KUBTY holds a Value grade of B, while DE has a Value grade of D.
KUBTY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KUBTY is likely the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
KUBTY or DE: Which Is the Better Value Stock Right Now?
Investors with an interest in Manufacturing - Farm Equipment stocks have likely encountered both Kubota Corp. (KUBTY - Free Report) and Deere (DE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Kubota Corp. has a Zacks Rank of #2 (Buy), while Deere has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KUBTY likely has seen a stronger improvement to its earnings outlook than DE has recently. But this is just one piece of the puzzle for value investors.
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.
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.
KUBTY currently has a forward P/E ratio of 15.34, while DE has a forward P/E of 33.36. We also note that KUBTY has a PEG ratio of 2.04. 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. DE currently has a PEG ratio of 2.57.
Another notable valuation metric for KUBTY is its P/B ratio of 1.05. 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, DE has a P/B of 6.
Based on these metrics and many more, KUBTY holds a Value grade of B, while DE has a Value grade of D.
KUBTY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KUBTY is likely the superior value option right now.