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DKILY vs. GRMN: Which Stock Is the Better Value Option?

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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with DAIKIN INDS LTD (DKILY - Free Report) and Garmin (GRMN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, DAIKIN INDS LTD has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DKILY likely has seen a stronger improvement to its earnings outlook than GRMN has recently. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

DKILY currently has a forward P/E ratio of 21.21, while GRMN has a forward P/E of 21.65. We also note that DKILY has a PEG ratio of 2.19. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GRMN currently has a PEG ratio of 2.95.

Another notable valuation metric for DKILY is its P/B ratio of 2.95. 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, GRMN has a P/B of 3.72.

Based on these metrics and many more, DKILY holds a Value grade of B, while GRMN has a Value grade of D.

DKILY has seen stronger estimate revision activity and sports more attractive valuation metrics than GRMN, so it seems like value investors will conclude that DKILY is the superior option right now.


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