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

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Kyocera (KYOCY - Free Report) and Littelfuse (LFUS - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Kyocera has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KYOCY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

KYOCY currently has a forward P/E ratio of 21.62, while LFUS has a forward P/E of 34.66. We also note that KYOCY has a PEG ratio of 2.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LFUS currently has a PEG ratio of 2.89.

Another notable valuation metric for KYOCY is its P/B ratio of 1.02. 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, LFUS has a P/B of 4.16.

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

KYOCY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KYOCY is likely the superior value option right now.


In-Depth Zacks Research for the Tickers Above


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Kyocera Corporation (KYOCY) - free report >>

Littelfuse, Inc. (LFUS) - free report >>

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