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NXPI vs. SLAB: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Semiconductor - Analog and Mixed sector might want to consider either NXP Semiconductors (NXPI - Free Report) or Silicon Laboratories (SLAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, NXP Semiconductors is sporting a Zacks Rank of #2 (Buy), while Silicon Laboratories has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXPI has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
NXPI currently has a forward P/E ratio of 12.48, while SLAB has a forward P/E of 33.64. We also note that NXPI has a PEG ratio of 1. 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. SLAB currently has a PEG ratio of 2.24.
Another notable valuation metric for NXPI is its P/B ratio of 3.23. 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, SLAB has a P/B of 4.24.
Based on these metrics and many more, NXPI holds a Value grade of B, while SLAB has a Value grade of D.
NXPI has seen stronger estimate revision activity and sports more attractive valuation metrics than SLAB, so it seems like value investors will conclude that NXPI is the superior option right now.
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NXPI vs. SLAB: Which Stock Is the Better Value Option?
Investors looking for stocks in the Semiconductor - Analog and Mixed sector might want to consider either NXP Semiconductors (NXPI - Free Report) or Silicon Laboratories (SLAB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, NXP Semiconductors is sporting a Zacks Rank of #2 (Buy), while Silicon Laboratories has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXPI has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
NXPI currently has a forward P/E ratio of 12.48, while SLAB has a forward P/E of 33.64. We also note that NXPI has a PEG ratio of 1. 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. SLAB currently has a PEG ratio of 2.24.
Another notable valuation metric for NXPI is its P/B ratio of 3.23. 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, SLAB has a P/B of 4.24.
Based on these metrics and many more, NXPI holds a Value grade of B, while SLAB has a Value grade of D.
NXPI has seen stronger estimate revision activity and sports more attractive valuation metrics than SLAB, so it seems like value investors will conclude that NXPI is the superior option right now.