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SIMO vs. LSCC: Which Stock Is the Better Value Option?

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Investors with an interest in Electronics - Semiconductors stocks have likely encountered both Silicon Motion (SIMO - Free Report) and Lattice Semiconductor (LSCC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Silicon Motion has a Zacks Rank of #2 (Buy), while Lattice Semiconductor has a Zacks Rank of #3 (Hold) right now. This means that SIMO's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

SIMO currently has a forward P/E ratio of 12.40, while LSCC has a forward P/E of 58.22. We also note that SIMO has a PEG ratio of 1.55. 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. LSCC currently has a PEG ratio of 5.82.

Another notable valuation metric for SIMO is its P/B ratio of 2.24. 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, LSCC has a P/B of 14.09.

Based on these metrics and many more, SIMO holds a Value grade of B, while LSCC has a Value grade of F.

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


In-Depth Zacks Research for the Tickers Above


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Silicon Motion Technology Corporation (SIMO) - free report >>

Lattice Semiconductor Corporation (LSCC) - free report >>

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