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CRUS or CEVA: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Cirrus Logic (CRUS - Free Report) or Ceva (CEVA - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Cirrus Logic is sporting a Zacks Rank of #2 (Buy), while Ceva has a Zacks Rank of #3 (Hold). This means that CRUS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
CRUS currently has a forward P/E ratio of 14.90, while CEVA has a forward P/E of 36.11. We also note that CRUS has a PEG ratio of 0.99. 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. CEVA currently has a PEG ratio of 1.81.
Another notable valuation metric for CRUS is its P/B ratio of 1.95. 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, CEVA has a P/B of 2.56.
These are just a few of the metrics contributing to CRUS's Value grade of A and CEVA's Value grade of F.
CRUS sticks out from CEVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRUS is the better option right now.
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CRUS or CEVA: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Cirrus Logic (CRUS - Free Report) or Ceva (CEVA - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
Right now, Cirrus Logic is sporting a Zacks Rank of #2 (Buy), while Ceva has a Zacks Rank of #3 (Hold). This means that CRUS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
CRUS currently has a forward P/E ratio of 14.90, while CEVA has a forward P/E of 36.11. We also note that CRUS has a PEG ratio of 0.99. 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. CEVA currently has a PEG ratio of 1.81.
Another notable valuation metric for CRUS is its P/B ratio of 1.95. 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, CEVA has a P/B of 2.56.
These are just a few of the metrics contributing to CRUS's Value grade of A and CEVA's Value grade of F.
CRUS sticks out from CEVA in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRUS is the better option right now.