Back to top

Image: Bigstock

GLW vs. AUDC: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Communication - Components stocks are likely familiar with Corning (GLW - Free Report) and AudioCodes (AUDC - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Corning is sporting a Zacks Rank of #2 (Buy), while AudioCodes 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 GLW has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

GLW currently has a forward P/E ratio of 19.89, while AUDC has a forward P/E of 20.63. We also note that GLW has a PEG ratio of 1.43. 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. AUDC currently has a PEG ratio of 1.81.

Another notable valuation metric for GLW is its P/B ratio of 2.61. 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, AUDC has a P/B of 4.79.

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

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Corning Incorporated (GLW) - free report >>

AudioCodes Ltd. (AUDC) - free report >>

Published in