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CAMP or BWXT: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either CalAmp (CAMP - Free Report) or BWX Technologies (BWXT - 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.

CalAmp has a Zacks Rank of #2 (Buy), while BWX Technologies has a Zacks Rank of #3 (Hold) right now. This means that CAMP'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.

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.

CAMP currently has a forward P/E ratio of 13.13, while BWXT has a forward P/E of 20.58. We also note that CAMP has a PEG ratio of 1.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BWXT currently has a PEG ratio of 1.93.

Another notable valuation metric for CAMP is its P/B ratio of 2.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BWXT has a P/B of 13.09.

These are just a few of the metrics contributing to CAMP's Value grade of A and BWXT's Value grade of D.

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


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