Yahoo Finance TEL vs. BWXT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of TE Connectivity (TEL) and BWX Technologies (BWXT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
TE Connectivity has a Zacks Rank of #2 (Buy), while BWX Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that TEL likely has seen a stronger improvement to its earnings outlook than BWXT has recently. But this is just one piece of the puzzle for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TEL currently has a forward P/E ratio of 19.33, while BWXT has a forward P/E of 26.35. We also note that TEL has a PEG ratio of 2.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BWXT currently has a PEG ratio of 5.73.
Another notable valuation metric for TEL is its P/B ratio of 3.43. 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, BWXT has a P/B of 8.70.
Based on these metrics and many more, TEL holds a Value grade of B, while BWXT has a Value grade of C.
TEL has seen stronger estimate revision activity and sports more attractive valuation metrics than BWXT, so it seems like value investors will conclude that TEL is the superior option right now.
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TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report
