Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Vishay Precision (VPG) and BWX Technologies (BWXT). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Vishay Precision is sporting a Zacks Rank of #2 (Buy), while BWX Technologies has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VPG is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
VPG currently has a forward P/E ratio of 17.36, while BWXT has a forward P/E of 19.25. We also note that VPG has a PEG ratio of 0.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BWXT currently has a PEG ratio of 2.18.
Another notable valuation metric for VPG is its P/B ratio of 2.31. 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, BWXT has a P/B of 18.63.
These metrics, and several others, help VPG earn a Value grade of B, while BWXT has been given a Value grade of D.
VPG sticks out from BWXT in both our Zacks Rank and Style Scores models, so value investors will likely feel that VPG is the better option right now.
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Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report
BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report
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