Yahoo Finance SKFRY or ESAB: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Metal Products - Procurement and Fabrication sector have probably already heard of AB SKF (SKFRY) and Esab (ESAB). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both AB SKF and Esab are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
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 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.
SKFRY currently has a forward P/E ratio of 12.73, while ESAB has a forward P/E of 14.89. We also note that SKFRY has a PEG ratio of 2.78. 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. ESAB currently has a PEG ratio of 9.13.
Another notable valuation metric for SKFRY is its P/B ratio of 1.43. 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, ESAB has a P/B of 2.53.
These metrics, and several others, help SKFRY earn a Value grade of B, while ESAB has been given a Value grade of D.
Both SKFRY and ESAB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SKFRY is the superior value option right now.
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AB SKF (SKFRY) : Free Stock Analysis Report
ESAB Corporation (ESAB) : Free Stock Analysis Report
