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MWA vs. NDSN: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Mueller Water Products (MWA - Free Report) or Nordson (NDSN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Mueller Water Products has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold). This means that MWA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
MWA currently has a forward P/E ratio of 15.99, while NDSN has a forward P/E of 27.43. We also note that MWA has a PEG ratio of 1.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NDSN currently has a PEG ratio of 2.11.
Another notable valuation metric for MWA is its P/B ratio of 3.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NDSN has a P/B of 5.53.
Based on these metrics and many more, MWA holds a Value grade of B, while NDSN has a Value grade of D.
MWA 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 MWA is likely the superior value option right now.
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MWA vs. NDSN: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Mueller Water Products (MWA - Free Report) or Nordson (NDSN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Mueller Water Products has a Zacks Rank of #2 (Buy), while Nordson has a Zacks Rank of #3 (Hold). This means that MWA's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
MWA currently has a forward P/E ratio of 15.99, while NDSN has a forward P/E of 27.43. We also note that MWA has a PEG ratio of 1.07. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NDSN currently has a PEG ratio of 2.11.
Another notable valuation metric for MWA is its P/B ratio of 3.4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NDSN has a P/B of 5.53.
Based on these metrics and many more, MWA holds a Value grade of B, while NDSN has a Value grade of D.
MWA 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 MWA is likely the superior value option right now.