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PH vs. IEX: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Parker-Hannifin (PH - Free Report) or Idex (IEX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Parker-Hannifin and Idex are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
PH currently has a forward P/E ratio of 20.94, while IEX has a forward P/E of 35.80. We also note that PH has a PEG ratio of 1.78. 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. IEX currently has a PEG ratio of 3.58.
Another notable valuation metric for PH is its P/B ratio of 4.11. 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, IEX has a P/B of 5.64.
These are just a few of the metrics contributing to PH's Value grade of A and IEX's Value grade of D.
PH has seen stronger estimate revision activity and sports more attractive valuation metrics than IEX, so it seems like value investors will conclude that PH is the superior option right now.
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PH vs. IEX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Parker-Hannifin (PH - Free Report) or Idex (IEX - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Parker-Hannifin and Idex are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
PH currently has a forward P/E ratio of 20.94, while IEX has a forward P/E of 35.80. We also note that PH has a PEG ratio of 1.78. 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. IEX currently has a PEG ratio of 3.58.
Another notable valuation metric for PH is its P/B ratio of 4.11. 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, IEX has a P/B of 5.64.
These are just a few of the metrics contributing to PH's Value grade of A and IEX's Value grade of D.
PH has seen stronger estimate revision activity and sports more attractive valuation metrics than IEX, so it seems like value investors will conclude that PH is the superior option right now.