We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VPG vs. LFUS: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Vishay Precision (VPG - Free Report) and Littelfuse (LFUS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vishay Precision has a Zacks Rank of #1 (Strong Buy), while Littelfuse has a Zacks Rank of #3 (Hold) right now. This means that VPG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VPG currently has a forward P/E ratio of 19.28, while LFUS has a forward P/E of 21.82. We also note that VPG has a PEG ratio of 0.96. 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 1.82.
Another notable valuation metric for VPG is its P/B ratio of 2.43. 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, LFUS has a P/B of 3.56.
Based on these metrics and many more, VPG holds a Value grade of B, while LFUS has a Value grade of C.
VPG stands above LFUS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VPG is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
VPG vs. LFUS: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Vishay Precision (VPG - Free Report) and Littelfuse (LFUS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vishay Precision has a Zacks Rank of #1 (Strong Buy), while Littelfuse has a Zacks Rank of #3 (Hold) right now. This means that VPG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
VPG currently has a forward P/E ratio of 19.28, while LFUS has a forward P/E of 21.82. We also note that VPG has a PEG ratio of 0.96. 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 1.82.
Another notable valuation metric for VPG is its P/B ratio of 2.43. 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, LFUS has a P/B of 3.56.
Based on these metrics and many more, VPG holds a Value grade of B, while LFUS has a Value grade of C.
VPG stands above LFUS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VPG is the superior value option right now.