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LDOS vs. EADSY: Which Stock Should Value Investors Buy 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 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 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.
Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #5 (Strong Sell) right now. This means that LDOS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
LDOS currently has a forward P/E ratio of 16.63, while EADSY has a forward P/E of 24.12. 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 1.72.
Another notable valuation metric for LDOS is its P/B ratio of 4.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EADSY has a P/B of 6.04.
Based on these metrics and many more, LDOS holds a Value grade of B, while EADSY has a Value grade of C.
LDOS stands above EADSY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LDOS is the superior value option right now.
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LDOS vs. EADSY: Which Stock Should Value Investors Buy 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 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 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.
Leidos has a Zacks Rank of #2 (Buy), while Airbus Group has a Zacks Rank of #5 (Strong Sell) right now. This means that LDOS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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.
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.
LDOS currently has a forward P/E ratio of 16.63, while EADSY has a forward P/E of 24.12. 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 1.72.
Another notable valuation metric for LDOS is its P/B ratio of 4.56. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EADSY has a P/B of 6.04.
Based on these metrics and many more, LDOS holds a Value grade of B, while EADSY has a Value grade of C.
LDOS stands above EADSY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LDOS is the superior value option right now.