JNPR vs. IDCC: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Wireless Equipment sector might want to consider either Juniper Networks (JNPR) or InterDigital (IDCC). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Juniper Networks and InterDigital have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
JNPR currently has a forward P/E ratio of 16.83, while IDCC has a forward P/E of 51.96. We also note that JNPR has a PEG ratio of 1.43. 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. IDCC currently has a PEG ratio of 3.46.
Another notable valuation metric for JNPR is its P/B ratio of 2.17. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IDCC has a P/B of 2.99.
These are just a few of the metrics contributing to JNPR's Value grade of B and IDCC's Value grade of D.
Both JNPR and IDCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JNPR is the superior value option right now.
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Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
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