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CR vs. HON: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Diversified Operations sector might want to consider either Crane (CR - Free Report) or Honeywell (HON - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Crane and Honeywell have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
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.
CR currently has a forward P/E ratio of 14.38, while HON has a forward P/E of 17.95. We also note that CR has a PEG ratio of 1.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HON currently has a PEG ratio of 1.93.
Another notable valuation metric for CR is its P/B ratio of 3.33. 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, HON has a P/B of 6.05.
These are just a few of the metrics contributing to CR's Value grade of B and HON's Value grade of C.
Both CR and HON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CR is the superior value option right now.
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CR vs. HON: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Diversified Operations sector might want to consider either Crane (CR - Free Report) or Honeywell (HON - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Crane and Honeywell have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
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.
CR currently has a forward P/E ratio of 14.38, while HON has a forward P/E of 17.95. We also note that CR has a PEG ratio of 1.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HON currently has a PEG ratio of 1.93.
Another notable valuation metric for CR is its P/B ratio of 3.33. 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, HON has a P/B of 6.05.
These are just a few of the metrics contributing to CR's Value grade of B and HON's Value grade of C.
Both CR and HON are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CR is the superior value option right now.