TTDKY vs. IIN: Which Stock Should Value Investors Buy Now?

TTDKY

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of TDK Corp. (TTDKY - Free Report) and IntriCon Corporation . 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.

Currently, TDK Corp. has a Zacks Rank of #2 (Buy), while IntriCon Corporation 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 TTDKY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

TTDKY currently has a forward P/E ratio of 17.44, while IIN has a forward P/E of 81.32. We also note that TTDKY has a PEG ratio of 0.63. 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. IIN currently has a PEG ratio of 6.78.

Another notable valuation metric for TTDKY is its P/B ratio of 2.05. 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, IIN has a P/B of 2.47.

These metrics, and several others, help TTDKY earn a Value grade of A, while IIN has been given a Value grade of D.

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

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