BZLFY vs. HON: Which Stock Is the Better Value Option?
Investors looking for stocks in the Diversified Operations sector might want to consider either Bunzl PLC (BZLFY) or Honeywell International Inc. (HON). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Bunzl PLC has a Zacks Rank of #2 (Buy), while Honeywell International Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BZLFY likely has seen a stronger improvement to its earnings outlook than HON has recently. But this is only part of the picture for value investors.
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 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.
BZLFY currently has a forward P/E ratio of 17.37, while HON has a forward P/E of 20.70. We also note that BZLFY has a PEG ratio of 1.35. 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. HON currently has a PEG ratio of 2.33.
Another notable valuation metric for BZLFY is its P/B ratio of 4.16. 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, HON has a P/B of 7.21.
Based on these metrics and many more, BZLFY holds a Value grade of B, while HON has a Value grade of D.
BZLFY sticks out from HON in both our Zacks Rank and Style Scores models, so value investors will likely feel that BZLFY is the better option right now.
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Bunzl PLC (BZLFY) : Free Stock Analysis Report
Honeywell International Inc. (HON) : Free Stock Analysis Report
