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KN or AIRG: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Communication - Components sector have probably already heard of Knowles (KN - Free Report) and Airgain (AIRG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Knowles and Airgain have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
KN currently has a forward P/E ratio of 14.80, while AIRG has a forward P/E of 80.11. We also note that KN has a PEG ratio of 1.48. 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. AIRG currently has a PEG ratio of 2.29.
Another notable valuation metric for KN is its P/B ratio of 1.36. 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, AIRG has a P/B of 4.18.
These are just a few of the metrics contributing to KN's Value grade of B and AIRG's Value grade of F.
Both KN and AIRG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KN is the superior value option right now.
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KN or AIRG: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Communication - Components sector have probably already heard of Knowles (KN - Free Report) and Airgain (AIRG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Knowles and Airgain have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
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.
KN currently has a forward P/E ratio of 14.80, while AIRG has a forward P/E of 80.11. We also note that KN has a PEG ratio of 1.48. 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. AIRG currently has a PEG ratio of 2.29.
Another notable valuation metric for KN is its P/B ratio of 1.36. 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, AIRG has a P/B of 4.18.
These are just a few of the metrics contributing to KN's Value grade of B and AIRG's Value grade of F.
Both KN and AIRG are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KN is the superior value option right now.