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JNPR or IDCC: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Wireless Equipment sector have probably already heard of Juniper Networks (JNPR - Free Report) and InterDigital (IDCC - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Juniper Networks and InterDigital are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

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.

JNPR currently has a forward P/E ratio of 16.41, while IDCC has a forward P/E of 52.43. We also note that JNPR has a PEG ratio of 1.39. 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. IDCC currently has a PEG ratio of 3.50.

Another notable valuation metric for JNPR is its P/B ratio of 2.12. 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, IDCC has a P/B of 3.02.

These metrics, and several others, help JNPR earn a Value grade of B, while IDCC has been given a Value grade of D.

Both JNPR and IDCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JNPR is the superior value option right now.


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Juniper Networks, Inc. (JNPR) - free report >>

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