SYNA vs. LSCC: Which Stock Should Value Investors Buy Now?

LSCC SYNA

Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Synaptics (SYNA - Free Report) or Lattice Semiconductor (LSCC - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

Synaptics and Lattice Semiconductor are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SYNA is likely seeing its earnings outlook improve to a greater extent. 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SYNA currently has a forward P/E ratio of 15.54, while LSCC has a forward P/E of 50.15. We also note that SYNA has a PEG ratio of 1.55. 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. LSCC currently has a PEG ratio of 5.02.

Another notable valuation metric for SYNA is its P/B ratio of 3.23. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, LSCC has a P/B of 11.81.

These are just a few of the metrics contributing to SYNA's Value grade of B and LSCC's Value grade of F.

SYNA stands above LSCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SYNA is the superior value option right now.

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