NJDCY or OLED: Which Is the Better Value Stock Right Now?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Nidec Corp. (NJDCY) and Universal Display Corp. (OLED). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Nidec Corp. has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold). This means that NJDCY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
NJDCY currently has a forward P/E ratio of 21.03, while OLED has a forward P/E of 40.32. We also note that NJDCY has a PEG ratio of 1.35. 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. OLED currently has a PEG ratio of 2.69.
Another notable valuation metric for NJDCY is its P/B ratio of 2.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, OLED has a P/B of 5.67.
These are just a few of the metrics contributing to NJDCY's Value grade of B and OLED's Value grade of D.
NJDCY stands above OLED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NJDCY is the superior value option right now.
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Nidec Corp. (NJDCY) : Free Stock Analysis Report
Universal Display Corporation (OLED) : Free Stock Analysis Report
