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DKILY vs. PHG: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either DAIKIN INDS LTD (DKILY - Free Report) or Royal Philips (PHG - 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.

DAIKIN INDS LTD has a Zacks Rank of #2 (Buy), while Royal Philips has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DKILY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

DKILY currently has a forward P/E ratio of 19.53, while PHG has a forward P/E of 23.02. We also note that DKILY has a PEG ratio of 2.60. 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. PHG currently has a PEG ratio of 3.57.

Another notable valuation metric for DKILY is its P/B ratio of 2.88. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PHG has a P/B of 2.90.

These metrics, and several others, help DKILY earn a Value grade of B, while PHG has been given a Value grade of D.

DKILY sticks out from PHG in both our Zacks Rank and Style Scores models, so value investors will likely feel that DKILY is the better option right now.


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Koninklijke Philips N.V. (PHG) - free report >>

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