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FLEX vs. GRMN: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Flex (FLEX - Free Report) and Garmin (GRMN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Flex and Garmin have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
FLEX currently has a forward P/E ratio of 13.60, while GRMN has a forward P/E of 25.45. We also note that FLEX has a PEG ratio of 1.02. 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. GRMN currently has a PEG ratio of 3.74.
Another notable valuation metric for FLEX is its P/B ratio of 2.89. 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, GRMN has a P/B of 4.90.
These are just a few of the metrics contributing to FLEX's Value grade of B and GRMN's Value grade of D.
Both FLEX and GRMN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLEX is the superior value option right now.
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FLEX vs. GRMN: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Flex (FLEX - Free Report) and Garmin (GRMN - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Flex and Garmin have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.
FLEX currently has a forward P/E ratio of 13.60, while GRMN has a forward P/E of 25.45. We also note that FLEX has a PEG ratio of 1.02. 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. GRMN currently has a PEG ratio of 3.74.
Another notable valuation metric for FLEX is its P/B ratio of 2.89. 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, GRMN has a P/B of 4.90.
These are just a few of the metrics contributing to FLEX's Value grade of B and GRMN's Value grade of D.
Both FLEX and GRMN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FLEX is the superior value option right now.