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ON vs. SLAB: Which Stock Should Value Investors Buy Now?
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Investors interested in Semiconductor - Analog and Mixed stocks are likely familiar with ON Semiconductor Corp. (ON - Free Report) and Silicon Laboratories (SLAB - 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 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.
ON Semiconductor Corp. has a Zacks Rank of #2 (Buy), while Silicon Laboratories has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ON likely has seen a stronger improvement to its earnings outlook than SLAB has recently. 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.
ON currently has a forward P/E ratio of 13.41, while SLAB has a forward P/E of 29.52. We also note that ON has a PEG ratio of 1.07. 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. SLAB currently has a PEG ratio of 1.97.
Another notable valuation metric for ON is its P/B ratio of 3.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SLAB has a P/B of 4.59.
These are just a few of the metrics contributing to ON's Value grade of A and SLAB's Value grade of D.
ON is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ON is likely the superior value option right now.
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ON vs. SLAB: Which Stock Should Value Investors Buy Now?
Investors interested in Semiconductor - Analog and Mixed stocks are likely familiar with ON Semiconductor Corp. (ON - Free Report) and Silicon Laboratories (SLAB - 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 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.
ON Semiconductor Corp. has a Zacks Rank of #2 (Buy), while Silicon Laboratories has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ON likely has seen a stronger improvement to its earnings outlook than SLAB has recently. 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.
ON currently has a forward P/E ratio of 13.41, while SLAB has a forward P/E of 29.52. We also note that ON has a PEG ratio of 1.07. 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. SLAB currently has a PEG ratio of 1.97.
Another notable valuation metric for ON is its P/B ratio of 3.44. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SLAB has a P/B of 4.59.
These are just a few of the metrics contributing to ON's Value grade of A and SLAB's Value grade of D.
ON is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ON is likely the superior value option right now.