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KYOCY or IIN: Which Is the Better Value Stock Right Now?

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Kyocera (KYOCY - Free Report) and IntriCon Corporation . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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

Right now, Kyocera is sporting a Zacks Rank of #1 (Strong Buy), while IntriCon Corporation has a Zacks Rank of #3 (Hold). This means that KYOCY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

KYOCY currently has a forward P/E ratio of 18.24, while IIN has a forward P/E of 30.10. We also note that KYOCY has a PEG ratio of 1.58. 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. IIN currently has a PEG ratio of 2.51.

Another notable valuation metric for KYOCY is its P/B ratio of 0.89. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, IIN has a P/B of 1.72.

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

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


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