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LXFR or CR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Manufacturing - General Industrial sector have probably already heard of Luxfer (LXFR - Free Report) and Crane (CR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Luxfer and Crane are both sporting a Zacks Rank of # 2 (Buy) right now. 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 piece of the puzzle for value investors.

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.

LXFR currently has a forward P/E ratio of 13.27, while CR has a forward P/E of 28.01. We also note that LXFR has a PEG ratio of 1.90. 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. CR currently has a PEG ratio of 2.17.

Another notable valuation metric for LXFR is its P/B ratio of 1.45. 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, CR has a P/B of 5.67.

Based on these metrics and many more, LXFR holds a Value grade of B, while CR has a Value grade of D.

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


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