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RRX vs. ETN: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Regal Beloit (RRX - Free Report) and Eaton (ETN - 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.
Regal Beloit has a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RRX has an improving earnings outlook. 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.
RRX currently has a forward P/E ratio of 12.08, while ETN has a forward P/E of 19.42. We also note that RRX has a PEG ratio of 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN currently has a PEG ratio of 1.77.
Another notable valuation metric for RRX is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 3.51.
These are just a few of the metrics contributing to RRX's Value grade of B and ETN's Value grade of C.
RRX has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that RRX is the superior option right now.
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RRX vs. ETN: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both Regal Beloit (RRX - Free Report) and Eaton (ETN - 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.
Regal Beloit has a Zacks Rank of #2 (Buy), while Eaton has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that RRX has an improving earnings outlook. 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.
RRX currently has a forward P/E ratio of 12.08, while ETN has a forward P/E of 19.42. We also note that RRX has a PEG ratio of 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ETN currently has a PEG ratio of 1.77.
Another notable valuation metric for RRX is its P/B ratio of 1.33. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ETN has a P/B of 3.51.
These are just a few of the metrics contributing to RRX's Value grade of B and ETN's Value grade of C.
RRX has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that RRX is the superior option right now.