BELFB or ROK: Which Is the Better Value Stock Right Now?

Zacks
02-01

Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both Bel Fuse (BELFB) and Rockwell Automation (ROK). 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Bel Fuse has a Zacks Rank of #2 (Buy), while Rockwell Automation has a Zacks Rank of #3 (Hold) right now. This means that BELFB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

BELFB currently has a forward P/E ratio of 14.67, while ROK has a forward P/E of 29.95. We also note that BELFB has a PEG ratio of 0.98. 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. ROK currently has a PEG ratio of 3.

Another notable valuation metric for BELFB is its P/B ratio of 2.83. 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, ROK has a P/B of 8.61.

These metrics, and several others, help BELFB earn a Value grade of A, while ROK has been given a Value grade of D.

BELFB sticks out from ROK in both our Zacks Rank and Style Scores models, so value investors will likely feel that BELFB is the better option right now.

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Bel Fuse Inc. (BELFB) : Free Stock Analysis Report

Rockwell Automation, Inc. (ROK) : Free Stock Analysis Report

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