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UEIC or SITM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Universal Electronics (UEIC - Free Report) and SiTime (SITM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Universal Electronics is sporting a Zacks Rank of #1 (Strong Buy), while SiTime has a Zacks Rank of #5 (Strong Sell). This means that UEIC'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.
UEIC currently has a forward P/E ratio of 14.47, while SITM has a forward P/E of 117.51. We also note that UEIC has a PEG ratio of 0.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SITM currently has a PEG ratio of 7.83.
Another notable valuation metric for UEIC 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, SITM has a P/B of 17.29.
These metrics, and several others, help UEIC earn a Value grade of B, while SITM has been given a Value grade of F.
UEIC has seen stronger estimate revision activity and sports more attractive valuation metrics than SITM, so it seems like value investors will conclude that UEIC is the superior option right now.
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UEIC or SITM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Universal Electronics (UEIC - Free Report) and SiTime (SITM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Universal Electronics is sporting a Zacks Rank of #1 (Strong Buy), while SiTime has a Zacks Rank of #5 (Strong Sell). This means that UEIC'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.
UEIC currently has a forward P/E ratio of 14.47, while SITM has a forward P/E of 117.51. We also note that UEIC has a PEG ratio of 0.96. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SITM currently has a PEG ratio of 7.83.
Another notable valuation metric for UEIC 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, SITM has a P/B of 17.29.
These metrics, and several others, help UEIC earn a Value grade of B, while SITM has been given a Value grade of F.
UEIC has seen stronger estimate revision activity and sports more attractive valuation metrics than SITM, so it seems like value investors will conclude that UEIC is the superior option right now.