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ENS vs. ABBNY: Which Stock Is the Better Value Option?

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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both EnerSys (ENS - Free Report) and ABB (ABBNY - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

EnerSys has a Zacks Rank of #2 (Buy), while ABB has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ENS likely has seen a stronger improvement to its earnings outlook than ABBNY has recently. 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 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.

ENS currently has a forward P/E ratio of 13.51, while ABBNY has a forward P/E of 25.28. We also note that ENS 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. ABBNY currently has a PEG ratio of 1.41.

Another notable valuation metric for ENS is its P/B ratio of 3.35. 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, ABBNY has a P/B of 10.61.

Based on these metrics and many more, ENS holds a Value grade of A, while ABBNY has a Value grade of D.

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

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