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EMR vs. KNYJY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Emerson Electric and Kone Oyj Unsponsored ADR 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. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
EMR currently has a forward P/E ratio of 19, while KNYJY has a forward P/E of 26.76. We also note that EMR has a PEG ratio of 2.09. 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. KNYJY currently has a PEG ratio of 2.21.
Another notable valuation metric for EMR is its P/B ratio of 2.62. 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, KNYJY has a P/B of 9.10.
These metrics, and several others, help EMR earn a Value grade of B, while KNYJY has been given a Value grade of C.
Both EMR and KNYJY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.
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EMR vs. KNYJY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of Emerson Electric (EMR - Free Report) and Kone Oyj Unsponsored ADR (KNYJY - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Emerson Electric and Kone Oyj Unsponsored ADR 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. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
EMR currently has a forward P/E ratio of 19, while KNYJY has a forward P/E of 26.76. We also note that EMR has a PEG ratio of 2.09. 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. KNYJY currently has a PEG ratio of 2.21.
Another notable valuation metric for EMR is its P/B ratio of 2.62. 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, KNYJY has a P/B of 9.10.
These metrics, and several others, help EMR earn a Value grade of B, while KNYJY has been given a Value grade of C.
Both EMR and KNYJY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EMR is the superior value option right now.