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

VPG

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Vishay Precision (VPG - Free Report) and IntriCon Corporation . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Vishay Precision has a Zacks Rank of #2 (Buy), while IntriCon Corporation has a Zacks Rank of #3 (Hold). This means that VPG's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.

VPG currently has a forward P/E ratio of 20.22, while IIN has a forward P/E of 37.15. We also note that VPG has a PEG ratio of 2.53. 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. IIN currently has a PEG ratio of 3.10.

Another notable valuation metric for VPG is its P/B ratio of 1.92. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IIN has a P/B of 2.13.

These metrics, and several others, help VPG earn a Value grade of B, while IIN has been given a Value grade of C.

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

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