Yahoo Finance BAESY or TDY: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Aerospace - Defense Equipment sector have probably already heard of Bae Systems PLC (BAESY) and Teledyne Technologies (TDY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Bae Systems PLC and Teledyne Technologies are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that BAESY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
BAESY currently has a forward P/E ratio of 13.96, while TDY has a forward P/E of 22.73. We also note that BAESY has a PEG ratio of 1.05. 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. TDY currently has a PEG ratio of 3.35.
Another notable valuation metric for BAESY is its P/B ratio of 2.25. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TDY has a P/B of 2.50.
Based on these metrics and many more, BAESY holds a Value grade of B, while TDY has a Value grade of C.
BAESY has seen stronger estimate revision activity and sports more attractive valuation metrics than TDY, so it seems like value investors will conclude that BAESY is the superior option right now.
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Bae Systems PLC (BAESY) : Free Stock Analysis Report
Teledyne Technologies Incorporated (TDY) : Free Stock Analysis Report
