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IFNNY or LSCC: Which Is the Better Value Stock Right Now?

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Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY - Free Report) and Lattice Semiconductor (LSCC - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, both Infineon Technologies AG and Lattice Semiconductor are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

IFNNY currently has a forward P/E ratio of 17.42, while LSCC has a forward P/E of 44.26. We also note that IFNNY has a PEG ratio of 0.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LSCC currently has a PEG ratio of 4.43.

Another notable valuation metric for IFNNY is its P/B ratio of 3.20. 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, LSCC has a P/B of 20.64.

These are just a few of the metrics contributing to IFNNY's Value grade of B and LSCC's Value grade of F.

Both IFNNY and LSCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFNNY is the superior value option right now.


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