Core Insights - Franklin Electric (FELE) is currently rated as a 2 (Buy) by Zacks Rank, while Schneider Electric SE (SBGSY) is rated as a 5 (Strong Sell), indicating a stronger earnings outlook for FELE compared to SBGSY [3] - Value investors utilize various valuation metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - FELE has a forward P/E ratio of 23.70, while SBGSY has a forward P/E of 29.55, suggesting that FELE may be more attractively priced [5] - The PEG ratio for FELE is 1.97, compared to SBGSY's PEG ratio of 2.05, indicating that FELE has a better expected EPS growth rate relative to its valuation [5] - FELE's P/B ratio stands at 3.46, while SBGSY's P/B ratio is 5.13, further supporting the notion that FELE is undervalued compared to SBGSY [6] - Based on these metrics, FELE holds a Value grade of B, whereas SBGSY has a Value grade of D, making FELE a more appealing option for value investors [6]
FELE or SBGSY: Which Is the Better Value Stock Right Now?