Yahoo Finance ENS vs. AOS: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - Electronics sector might want to consider either EnerSys (ENS) or A.O. Smith (AOS). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
EnerSys has a Zacks Rank of #1 (Strong Buy), while A.O. Smith has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ENS is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 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.
ENS currently has a forward P/E ratio of 14.62, while AOS has a forward P/E of 19.21. We also note that ENS has a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AOS currently has a PEG ratio of 2.13.
Another notable valuation metric for ENS is its P/B ratio of 2.55. 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, AOS has a P/B of 5.60.
These metrics, and several others, help ENS earn a Value grade of B, while AOS has been given a Value grade of C.
ENS stands above AOS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ENS is the superior value option right now.
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Enersys (ENS) : Free Stock Analysis Report
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
