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KYOCY vs. BWXT: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Kyocera (KYOCY - Free Report) and BWX Technologies (BWXT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.

Kyocera has a Zacks Rank of #2 (Buy), while BWX Technologies has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KYOCY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

KYOCY currently has a forward P/E ratio of 21.05, while BWXT has a forward P/E of 21.14. We also note that KYOCY has a PEG ratio of 2.46. 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. BWXT currently has a PEG ratio of 3.39.

Another notable valuation metric for KYOCY is its P/B ratio of 0.99. 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, BWXT has a P/B of 10.32.

Based on these metrics and many more, KYOCY holds a Value grade of B, while BWXT has a Value grade of C.

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


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