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

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either TDK Corp. (TTDKY - Free Report) or Universal Display Corp. (OLED - Free Report) . 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

TDK Corp. has a Zacks Rank of #2 (Buy), while Universal Display Corp. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTDKY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

TTDKY currently has a forward P/E ratio of 15.34, while OLED has a forward P/E of 41.51. We also note that TTDKY has a PEG ratio of 1.01. 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. OLED currently has a PEG ratio of 1.33.

Another notable valuation metric for TTDKY is its P/B ratio of 1.60. 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 7.21.

These are just a few of the metrics contributing to TTDKY's Value grade of A and OLED's Value grade of D.

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


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