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UEIC vs. SITM: Which Stock Is the Better Value Option?
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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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Universal Electronics has a Zacks Rank of #1 (Strong Buy), while SiTime has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that UEIC likely has seen a stronger improvement to its earnings outlook than SITM has recently. But this is just one factor that value investors are interested in.
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.
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.
UEIC currently has a forward P/E ratio of 15.26, while SITM has a forward P/E of 116.84. We also note that UEIC has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SITM currently has a PEG ratio of 7.79.
Another notable valuation metric for UEIC is its P/B ratio of 2.82. 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, SITM has a P/B of 16.92.
These are just a few of the metrics contributing to UEIC's Value grade of B and SITM's Value grade of F.
UEIC sticks out from SITM in both our Zacks Rank and Style Scores models, so value investors will likely feel that UEIC is the better option right now.
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UEIC vs. SITM: Which Stock Is the Better Value Option?
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 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Universal Electronics has a Zacks Rank of #1 (Strong Buy), while SiTime has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that UEIC likely has seen a stronger improvement to its earnings outlook than SITM has recently. But this is just one factor that value investors are interested in.
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.
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.
UEIC currently has a forward P/E ratio of 15.26, while SITM has a forward P/E of 116.84. We also note that UEIC has a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SITM currently has a PEG ratio of 7.79.
Another notable valuation metric for UEIC is its P/B ratio of 2.82. 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, SITM has a P/B of 16.92.
These are just a few of the metrics contributing to UEIC's Value grade of B and SITM's Value grade of F.
UEIC sticks out from SITM in both our Zacks Rank and Style Scores models, so value investors will likely feel that UEIC is the better option right now.