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LPL vs. IMMR: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Computer - Peripheral Equipment sector might want to consider either LG Display (LPL - Free Report) or Immersion (IMMR - 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.

LG Display and Immersion are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that LPL'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.

LPL currently has a forward P/E ratio of 7.80, while IMMR has a forward P/E of 24.46. We also note that LPL has a PEG ratio of 0.17. 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. IMMR currently has a PEG ratio of 1.63.

Another notable valuation metric for LPL is its P/B ratio of 0.80. 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, IMMR has a P/B of 7.44.

These metrics, and several others, help LPL earn a Value grade of A, while IMMR has been given a Value grade of F.

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


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