SXI vs. IEX: Which Stock Is the Better Value Option?
Investors interested in Manufacturing - General Industrial stocks are likely familiar with Standex International (SXI) 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.
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 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, Standex International has a Zacks Rank of #2 (Buy), while Idex has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SXI likely has seen a stronger improvement to its earnings outlook than IEX has recently. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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 19.77, while IEX has a forward P/E of 27.94. We also note that SXI has a PEG ratio of 2.20. 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 2.33.
Another notable valuation metric for SXI is its P/B ratio of 2.99. 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, IEX has a P/B of 5.14.
Based on these metrics and many more, SXI holds a Value grade of B, while IEX has a Value grade of D.
SXI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SXI is likely 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
