EADSY vs. EH: Which Stock Is the Better Value Option?

Investors with an interest in Aerospace - Defense Equipment stocks have likely encountered both Airbus SE - Unsponsored ADR (EADSY) and EHang Holdings Limited Unsponsored ADR (EH). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Airbus SE - Unsponsored ADR and EHang Holdings Limited Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that EADSY likely has seen a stronger improvement to its earnings outlook than EH has recently. However, value investors will care about much more than just this.

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.

EADSY currently has a forward P/E ratio of 32.66, while EH has a forward P/E of 184.10. We also note that EADSY has a PEG ratio of 1.67. 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. EH currently has a PEG ratio of 5.55.

Another notable valuation metric for EADSY is its P/B ratio of 7.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EH has a P/B of 9.39.

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

EADSY 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 EADSY is likely the superior value option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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