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ENS or ZWS: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS - Free Report) or Zurn Water (ZWS - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both EnerSys and Zurn Water are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture 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.

ENS currently has a forward P/E ratio of 14.10, while ZWS has a forward P/E of 32.24. We also note that ENS has a PEG ratio of 1.41. 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. ZWS currently has a PEG ratio of 1.61.

Another notable valuation metric for ENS is its P/B ratio of 2.12. 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, ZWS has a P/B of 34.36.

These are just a few of the metrics contributing to ENS's Value grade of B and ZWS's Value grade of D.

Both ENS and ZWS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENS is the superior value option right now.


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Enersys (ENS) - free report >>

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