U.S. Markets open in 8 hrs 1 min

NVT vs. OLED: Which Stock Is the Better Value Option?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of nVent Electric (NVT) and Universal Display Corp. (OLED). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

nVent Electric has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NVT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

NVT currently has a forward P/E ratio of 13.58, while OLED has a forward P/E of 94.09. We also note that NVT has a PEG ratio of 2.83. 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 3.14.

Another notable valuation metric for NVT is its P/B ratio of 1.32. 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, OLED has a P/B of 10.38.

These metrics, and several others, help NVT earn a Value grade of B, while OLED has been given a Value grade of F.

NVT stands above OLED thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NVT is the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
nVent Electric PLC (NVT) : Free Stock Analysis Report
 
Universal Display Corporation (OLED) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research