JNPR or MSI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Wireless Equipment sector might want to consider either Juniper Networks (JNPR) or Motorola (MSI). 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Juniper Networks and Motorola are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that JNPR likely has seen a stronger improvement to its earnings outlook than MSI 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
JNPR currently has a forward P/E ratio of 13.87, while MSI has a forward P/E of 23.70. We also note that JNPR has a PEG ratio of 1.99. 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. MSI currently has a PEG ratio of 2.63.
Another notable valuation metric for JNPR is its P/B ratio of 2.27. 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, MSI has a P/B of 337.27.
These metrics, and several others, help JNPR earn a Value grade of B, while MSI has been given a Value grade of C.
JNPR 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 JNPR is likely the superior value option right now.
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Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
Motorola Solutions, Inc. (MSI) : Free Stock Analysis Report
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