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SXI or PH: Which Is the Better Value Stock Right Now?

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·2 min read
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Investors interested in Manufacturing - General Industrial stocks are likely familiar with Standex International (SXI) and Parker-Hannifin (PH). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, both Standex International and Parker-Hannifin are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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 17.90, while PH has a forward P/E of 22.60. We also note that SXI has a PEG ratio of 1.28. 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. PH currently has a PEG ratio of 1.92.

Another notable valuation metric for SXI is its P/B ratio of 1.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PH has a P/B of 5.26.

Based on these metrics and many more, SXI holds a Value grade of B, while PH has a Value grade of C.

Both SXI and PH 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
 
ParkerHannifin Corporation (PH) : Free Stock Analysis Report
 
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