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ENS vs. ABBNY: 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 EnerSys (ENS - Free Report) and ABB (ABBNY - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both EnerSys 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 piece of the puzzle for value investors.
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.
ENS currently has a forward P/E ratio of 10.51, while ABBNY has a forward P/E of 24.20. We also note that ENS has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABBNY currently has a PEG ratio of 2.73.
Another notable valuation metric for ENS is its P/B ratio of 2.09. 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, ABBNY has a P/B of 7.38.
These are just a few of the metrics contributing to ENS's Value grade of A and ABBNY's Value grade of C.
Both ENS and ABBNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENS is the superior value option right now.
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ENS vs. ABBNY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Manufacturing - Electronics sector have probably already heard of EnerSys (ENS - Free Report) and ABB (ABBNY - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both EnerSys 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 piece of the puzzle for value investors.
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.
ENS currently has a forward P/E ratio of 10.51, while ABBNY has a forward P/E of 24.20. We also note that ENS has a PEG ratio of 0.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABBNY currently has a PEG ratio of 2.73.
Another notable valuation metric for ENS is its P/B ratio of 2.09. 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, ABBNY has a P/B of 7.38.
These are just a few of the metrics contributing to ENS's Value grade of A and ABBNY's Value grade of C.
Both ENS and ABBNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ENS is the superior value option right now.