DXPE vs. B: Which Stock Should Value Investors Buy Now?

Investors interested in Manufacturing - General Industrial stocks are likely familiar with DXP Enterprises (DXPE) and Barnes Group (B). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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.

DXP Enterprises and Barnes Group are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DXPE is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

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.

DXPE currently has a forward P/E ratio of 13.51, while B has a forward P/E of 16.64. We also note that DXPE has a PEG ratio of 0.77. 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. B currently has a PEG ratio of 2.38.

Another notable valuation metric for DXPE is its P/B ratio of 1.78. 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, B has a P/B of 2.24.

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

DXPE 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 DXPE is likely the superior value option right now.

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DXP Enterprises, Inc. (DXPE) : Free Stock Analysis Report
 
Barnes Group, Inc. (B) : Free Stock Analysis Report
 
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