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FELE vs. ABB: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Franklin Electric (FELE - Free Report) or ABB . 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.
Right now, both Franklin Electric and ABB are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FELE currently has a forward P/E ratio of 21.53, while ABB has a forward P/E of 22.49. We also note that FELE has a PEG ratio of 1.79. 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. ABB currently has a PEG ratio of 3.63.
Another notable valuation metric for FELE is its P/B ratio of 3.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABB has a P/B of 5.75.
These metrics, and several others, help FELE earn a Value grade of B, while ABB has been given a Value grade of C.
Both FELE and ABB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FELE is the superior value option right now.
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FELE vs. ABB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Franklin Electric (FELE - Free Report) or ABB . 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.
Right now, both Franklin Electric and ABB are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FELE currently has a forward P/E ratio of 21.53, while ABB has a forward P/E of 22.49. We also note that FELE has a PEG ratio of 1.79. 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. ABB currently has a PEG ratio of 3.63.
Another notable valuation metric for FELE is its P/B ratio of 3.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ABB has a P/B of 5.75.
These metrics, and several others, help FELE earn a Value grade of B, while ABB has been given a Value grade of C.
Both FELE and ABB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FELE is the superior value option right now.