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KN vs. VCRA: Which Stock Is the Better Value Option?
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Investors interested in Communication - Components stocks are likely familiar with Knowles (KN - Free Report) and Vocera Communications . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Currently, Knowles has a Zacks Rank of #2 (Buy), while Vocera Communications has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KN likely has seen a stronger improvement to its earnings outlook than VCRA has recently. But this is just one factor that value investors are interested in.
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.
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.
KN currently has a forward P/E ratio of 13.38, while VCRA has a forward P/E of 80.12. We also note that KN has a PEG ratio of 1.34. 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 4.45.
Another notable valuation metric for KN is its P/B ratio of 1.29. 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 11.04.
These are just a few of the metrics contributing to KN's Value grade of B and VCRA's Value grade of D.
KN stands above VCRA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KN is the superior value option right now.
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KN vs. VCRA: Which Stock Is the Better Value Option?
Investors interested in Communication - Components stocks are likely familiar with Knowles (KN - Free Report) and Vocera Communications . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.
Currently, Knowles has a Zacks Rank of #2 (Buy), while Vocera Communications has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that KN likely has seen a stronger improvement to its earnings outlook than VCRA has recently. But this is just one factor that value investors are interested in.
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.
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.
KN currently has a forward P/E ratio of 13.38, while VCRA has a forward P/E of 80.12. We also note that KN has a PEG ratio of 1.34. 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 4.45.
Another notable valuation metric for KN is its P/B ratio of 1.29. 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 11.04.
These are just a few of the metrics contributing to KN's Value grade of B and VCRA's Value grade of D.
KN stands above VCRA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KN is the superior value option right now.