Investors interested in stocks from the Aerospace - Defense sector have probably already heard of Leidos (LDOS) and Airbus Group (EADSY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Leidos has a Zacks Rank of #1 (Strong Buy), while Airbus Group has a Zacks Rank of #4 (Sell). This means that LDOS'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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

LDOS currently has a forward P/E ratio of 20.54, while EADSY has a forward P/E of 27.03. We also note that LDOS has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EADSY currently has a PEG ratio of 2.58.

Another notable valuation metric for LDOS is its P/B ratio of 5.55. 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, EADSY has a P/B of 6.29.

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

LDOS stands above EADSY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LDOS is the superior value option right now.

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Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

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