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AZZ vs. ETN: Which Stock Is the Better Value Option?
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Investors with an interest in Manufacturing - Electronics stocks have likely encountered both AZZ (AZZ - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
AZZ and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that AZZ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AZZ currently has a forward P/E ratio of 14.39, while ETN has a forward P/E of 24.48. We also note that AZZ has a PEG ratio of 1.03. 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. ETN currently has a PEG ratio of 2.37.
Another notable valuation metric for AZZ is its P/B ratio of 2.43. 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, ETN has a P/B of 6.28.
These are just a few of the metrics contributing to AZZ's Value grade of A and ETN's Value grade of C.
AZZ has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that AZZ is the superior option right now.
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AZZ vs. ETN: Which Stock Is the Better Value Option?
Investors with an interest in Manufacturing - Electronics stocks have likely encountered both AZZ (AZZ - Free Report) and Eaton (ETN - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
AZZ and Eaton are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that AZZ's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AZZ currently has a forward P/E ratio of 14.39, while ETN has a forward P/E of 24.48. We also note that AZZ has a PEG ratio of 1.03. 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. ETN currently has a PEG ratio of 2.37.
Another notable valuation metric for AZZ is its P/B ratio of 2.43. 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, ETN has a P/B of 6.28.
These are just a few of the metrics contributing to AZZ's Value grade of A and ETN's Value grade of C.
AZZ has seen stronger estimate revision activity and sports more attractive valuation metrics than ETN, so it seems like value investors will conclude that AZZ is the superior option right now.