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CR vs. ITT: Which Stock Is the Better Value Option?

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Investors interested in Diversified Operations stocks are likely familiar with Crane (CR - Free Report) and ITT (ITT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Crane has a Zacks Rank of #2 (Buy), while ITT 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 CR has an improving earnings outlook. But this is just one piece of the puzzle 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.

CR currently has a forward P/E ratio of 15.56, while ITT has a forward P/E of 22.56. We also note that CR has a PEG ratio of 0.82. 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. ITT currently has a PEG ratio of 1.47.

Another notable valuation metric for CR is its P/B ratio of 3.23. 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, ITT has a P/B of 3.65.

These metrics, and several others, help CR earn a Value grade of B, while ITT has been given a Value grade of C.

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


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