Back to top

Image: Bigstock

LPL vs. IMMR: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Computer - Peripheral Equipment stocks are likely familiar with LG Display (LPL - Free Report) and Immersion (IMMR - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

LG Display has a Zacks Rank of #1 (Strong Buy), while Immersion 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 LPL 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 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.

LPL currently has a forward P/E ratio of 4.95, while IMMR has a forward P/E of 11.56. We also note that LPL has a PEG ratio of 0.15. 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. IMMR currently has a PEG ratio of 0.77.

Another notable valuation metric for LPL is its P/B ratio of 0.60. 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, IMMR has a P/B of 2.34.

These are just a few of the metrics contributing to LPL's Value grade of A and IMMR's Value grade of C.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


LG Display Co., Ltd. (LPL) - free report >>

Immersion Corporation (IMMR) - free report >>

Published in