SXI or IEX: Which Is the Better Value Stock Right Now?
Investors interested in Manufacturing - General Industrial stocks are likely familiar with Standex International (SXI) and Idex (IEX). 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.
Currently, Standex International has a Zacks Rank of #2 (Buy), while Idex has a Zacks Rank of #5 (Strong Sell). This means that SXI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
SXI currently has a forward P/E ratio of 20.14, while IEX has a forward P/E of 27.74. We also note that SXI has a PEG ratio of 2.24. 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 2.31.
Another notable valuation metric for SXI is its P/B ratio of 3.05. 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 5.10.
Based on these metrics and many more, SXI holds a Value grade of B, while IEX has a Value grade of F.
SXI sticks out from IEX in both our Zacks Rank and Style Scores models, so value investors will likely feel that SXI is the better option right now.
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Standex International Corporation (SXI) : Free Stock Analysis Report
IDEX Corporation (IEX) : Free Stock Analysis Report
