VPG vs. IIN: Which Stock Should Value Investors Buy Now?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Vishay Precision (VPG) and IntriCon Corporation (IIN). 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Vishay Precision and IntriCon Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. 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 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.
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 19.54, while IIN has a forward P/E of 37.40. We also note that VPG has a PEG ratio of 2.44. 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. IIN currently has a PEG ratio of 3.12.
Another notable valuation metric for VPG is its P/B ratio of 1.86. 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, IIN has a P/B of 2.14.
Based on these metrics and many more, VPG holds a Value grade of B, while IIN has a Value grade of C.
VPG stands above IIN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VPG is the superior value option right now.
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Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report
IntriCon Corporation (IIN) : Free Stock Analysis Report
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