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PCRFY vs. DLB: Which Stock Should Value Investors Buy Now?

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Investors interested in Audio Video Production stocks are likely familiar with Panasonic Corp. (PCRFY) and Dolby Laboratories (DLB). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Right now, Panasonic Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Dolby Laboratories has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PCRFY has an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

PCRFY currently has a forward P/E ratio of 13.37, while DLB has a forward P/E of 28.64. We also note that PCRFY has a PEG ratio of 1.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DLB currently has a PEG ratio of 2.20.

Another notable valuation metric for PCRFY is its P/B ratio of 1.27. 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, DLB has a P/B of 3.95.

Based on these metrics and many more, PCRFY holds a Value grade of A, while DLB has a Value grade of D.

PCRFY has seen stronger estimate revision activity and sports more attractive valuation metrics than DLB, so it seems like value investors will conclude that PCRFY is the superior option right now.


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Panasonic Corp. (PCRFY) : Free Stock Analysis Report
 
Dolby Laboratories (DLB) : Free Stock Analysis Report
 
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