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FN vs. LFUS: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Fabrinet (FN - Free Report) and Littelfuse (LFUS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Fabrinet has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #3 (Hold) right now. This means that FN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
FN currently has a forward P/E ratio of 13.52, while LFUS has a forward P/E of 22.88. We also note that FN has a PEG ratio of 1.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LFUS currently has a PEG ratio of 1.91.
Another notable valuation metric for FN is its P/B ratio of 2.18. 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, LFUS has a P/B of 3.74.
Based on these metrics and many more, FN holds a Value grade of A, while LFUS has a Value grade of C.
FN has seen stronger estimate revision activity and sports more attractive valuation metrics than LFUS, so it seems like value investors will conclude that FN is the superior option right now.
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FN vs. LFUS: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Fabrinet (FN - Free Report) and Littelfuse (LFUS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Fabrinet has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #3 (Hold) right now. This means that FN's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
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.
FN currently has a forward P/E ratio of 13.52, while LFUS has a forward P/E of 22.88. We also note that FN has a PEG ratio of 1.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LFUS currently has a PEG ratio of 1.91.
Another notable valuation metric for FN is its P/B ratio of 2.18. 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, LFUS has a P/B of 3.74.
Based on these metrics and many more, FN holds a Value grade of A, while LFUS has a Value grade of C.
FN has seen stronger estimate revision activity and sports more attractive valuation metrics than LFUS, so it seems like value investors will conclude that FN is the superior option right now.