LXFR vs. IEX: Which Stock Should Value Investors Buy Now?
Investors with an interest in Manufacturing - General Industrial stocks have likely encountered both Luxfer (LXFR) and 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.
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.
Luxfer and Idex are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LXFR has 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 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.
LXFR currently has a forward P/E ratio of 19.29, while IEX has a forward P/E of 36.51. We also note that LXFR has a PEG ratio of 1.48. 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. IEX currently has a PEG ratio of 3.04.
Another notable valuation metric for LXFR is its P/B ratio of 3.71. 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, IEX has a P/B of 6.50.
These are just a few of the metrics contributing to LXFR's Value grade of B and IEX's Value grade of D.
LXFR stands above IEX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LXFR is the superior value option right now.
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Luxfer Holdings PLC (LXFR) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
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