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NPO vs. B: Which Stock Is the Better Value Option?

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Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both EnPro Industries (NPO - Free Report) and Barnes Group (B - 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 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.

Currently, EnPro Industries has a Zacks Rank of #1 (Strong Buy), while Barnes Group has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NPO likely has seen a stronger improvement to its earnings outlook than B has recently. But this is only part of the picture for value investors.

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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

NPO currently has a forward P/E ratio of 15.93, while B has a forward P/E of 16.13. We also note that NPO has a PEG ratio of 1.06. 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. B currently has a PEG ratio of 2.30.

Another notable valuation metric for NPO is its P/B ratio of 1.38. 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, B has a P/B of 2.22.

Based on these metrics and many more, NPO holds a Value grade of B, while B has a Value grade of C.

NPO 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 NPO is likely the superior value option right now.


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