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TXT vs. EADSY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Aerospace - Defense sector might want to consider either Textron (TXT - Free Report) or Airbus Group (EADSY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Textron has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TXT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
TXT currently has a forward P/E ratio of 13.54, while EADSY has a forward P/E of 21.17. We also note that TXT 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. EADSY currently has a PEG ratio of 1.71.
Another notable valuation metric for TXT is its P/B ratio of 1.98. 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, EADSY has a P/B of 15.58.
These metrics, and several others, help TXT earn a Value grade of A, while EADSY has been given a Value grade of C.
TXT stands above EADSY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TXT is the superior value option right now.
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TXT vs. EADSY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Aerospace - Defense sector might want to consider either Textron (TXT - Free Report) or Airbus Group (EADSY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Textron has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TXT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
TXT currently has a forward P/E ratio of 13.54, while EADSY has a forward P/E of 21.17. We also note that TXT 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. EADSY currently has a PEG ratio of 1.71.
Another notable valuation metric for TXT is its P/B ratio of 1.98. 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, EADSY has a P/B of 15.58.
These metrics, and several others, help TXT earn a Value grade of A, while EADSY has been given a Value grade of C.
TXT stands above EADSY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that TXT is the superior value option right now.