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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Kyocera (KYOCY) and Universal Display Corp. (OLED). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Currently, Kyocera has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KYOCY likely has seen a stronger improvement to its earnings outlook than OLED 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 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.
KYOCY currently has a forward P/E ratio of 23.95, while OLED has a forward P/E of 99.44. We also note that KYOCY has a PEG ratio of 2.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. OLED currently has a PEG ratio of 3.31.
Another notable valuation metric for KYOCY is its P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, OLED has a P/B of 12.27.
Based on these metrics and many more, KYOCY holds a Value grade of B, while OLED has a Value grade of F.
KYOCY has seen stronger estimate revision activity and sports more attractive valuation metrics than OLED, so it seems like value investors will conclude that KYOCY is the superior option right now.
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Kyocera Corporation (KYOCY) : Free Stock Analysis Report
Universal Display Corporation (OLED) : Free Stock Analysis Report
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