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LDOS or EADSY: Which Is the Better Value Stock Right Now?
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Investors interested in Aerospace - Defense stocks are likely familiar with Leidos (LDOS - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LDOS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LDOS currently has a forward P/E ratio of 16.63, while EADSY has a forward P/E of 24.20. We also note that LDOS has a PEG ratio of 1.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EADSY currently has a PEG ratio of 1.73.
Another notable valuation metric for LDOS is its P/B ratio of 4.56. 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, EADSY has a P/B of 6.06.
Based on these metrics and many more, LDOS holds a Value grade of B, while EADSY has a Value grade of C.
LDOS sticks out from EADSY in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better option right now.
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LDOS or EADSY: Which Is the Better Value Stock Right Now?
Investors interested in Aerospace - Defense stocks are likely familiar with Leidos (LDOS - Free Report) and Airbus Group (EADSY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LDOS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
LDOS currently has a forward P/E ratio of 16.63, while EADSY has a forward P/E of 24.20. We also note that LDOS has a PEG ratio of 1.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EADSY currently has a PEG ratio of 1.73.
Another notable valuation metric for LDOS is its P/B ratio of 4.56. 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, EADSY has a P/B of 6.06.
Based on these metrics and many more, LDOS holds a Value grade of B, while EADSY has a Value grade of C.
LDOS sticks out from EADSY in both our Zacks Rank and Style Scores models, so value investors will likely feel that LDOS is the better option right now.