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

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Investors with an interest in Communication - Components stocks have likely encountered both Corning (GLW - Free Report) and Vocera Communications . 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.

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 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 Vocera Communications has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GLW likely has seen a stronger improvement to its earnings outlook than VCRA has recently. But this is only part of the picture 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

GLW currently has a forward P/E ratio of 20.56, while VCRA has a forward P/E of 58.86. We also note that GLW has a PEG ratio of 1.16. 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. VCRA currently has a PEG ratio of 4.06.

Another notable valuation metric for GLW is its P/B ratio of 3.28. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, VCRA has a P/B of 7.74.

Based on these metrics and many more, GLW holds a Value grade of B, while VCRA has a Value grade of D.

GLW has seen stronger estimate revision activity and sports more attractive valuation metrics than VCRA, so it seems like value investors will conclude that GLW is the superior option right now.


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