SXI vs. IEX: Which Stock Should Value Investors Buy Now?
SXI vs. IEX: Which Stock Is the Better Value Option?
Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Standex International (SXI) or Idex (IEX). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Standex International and Idex are sporting a Zacks Rank of # 2 (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 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SXI currently has a forward P/E ratio of 18.94, while IEX has a forward P/E of 33.21. We also note that SXI has a PEG ratio of 1.35. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IEX currently has a PEG ratio of 2.77.
Another notable valuation metric for SXI is its P/B ratio of 2.52. 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, IEX has a P/B of 6.
Based on these metrics and many more, SXI holds a Value grade of B, while IEX has a Value grade of D.
Both SXI and IEX are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SXI is the superior value option right now.
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Standex International Corporation (SXI): Free Stock Analysis Report
IDEX Corporation (IEX): Free Stock Analysis Report
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