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CW or AVAV: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Curtiss-Wright (CW - Free Report) and AeroVironment (AVAV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Curtiss-Wright is sporting a Zacks Rank of #2 (Buy), while AeroVironment has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CW has an improving earnings 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.
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.
CW currently has a forward P/E ratio of 17.09, while AVAV has a forward P/E of 69.20. We also note that CW has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVAV currently has a PEG ratio of 3.46.
Another notable valuation metric for CW is its P/B ratio of 2.88. 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, AVAV has a P/B of 5.13.
Based on these metrics and many more, CW holds a Value grade of B, while AVAV has a Value grade of F.
CW stands above AVAV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CW is the superior value option right now.
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CW or AVAV: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Curtiss-Wright (CW - Free Report) and AeroVironment (AVAV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Curtiss-Wright is sporting a Zacks Rank of #2 (Buy), while AeroVironment has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CW has an improving earnings 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.
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.
CW currently has a forward P/E ratio of 17.09, while AVAV has a forward P/E of 69.20. We also note that CW has a PEG ratio of 1.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AVAV currently has a PEG ratio of 3.46.
Another notable valuation metric for CW is its P/B ratio of 2.88. 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, AVAV has a P/B of 5.13.
Based on these metrics and many more, CW holds a Value grade of B, while AVAV has a Value grade of F.
CW stands above AVAV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CW is the superior value option right now.