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VWDRY vs. ABBNY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either Vestas Wind Systems AS (VWDRY - Free Report) or ABB (ABBNY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Vestas Wind Systems AS is sporting a Zacks Rank of #2 (Buy), while ABB has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VWDRY likely has seen a stronger improvement to its earnings outlook than ABBNY has recently. 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.

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.

VWDRY currently has a forward P/E ratio of 26.47, while ABBNY has a forward P/E of 29.53. We also note that VWDRY has a PEG ratio of 0.64. 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. ABBNY currently has a PEG ratio of 2.35.

Another notable valuation metric for VWDRY is its P/B ratio of 5.77. 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, ABBNY has a P/B of 8.85.

These metrics, and several others, help VWDRY earn a Value grade of A, while ABBNY has been given a Value grade of C.

VWDRY sticks out from ABBNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that VWDRY is the better option right now.


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