ASX vs. SYNA: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either ASE Technology Hldg (ASX) or Synaptics (SYNA). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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.
Both ASE Technology Hldg and Synaptics have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
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 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.
ASX currently has a forward P/E ratio of 12.32, while SYNA has a forward P/E of 16.79. We also note that ASX has a PEG ratio of 0.82. 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. SYNA currently has a PEG ratio of 1.68.
Another notable valuation metric for ASX is its P/B ratio of 2.02. 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, SYNA has a P/B of 5.04.
These metrics, and several others, help ASX earn a Value grade of A, while SYNA has been given a Value grade of D.
Both ASX and SYNA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASX is the superior value option right now.
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ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
Synaptics Incorporated (SYNA) : Free Stock Analysis Report
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