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MX or MPWR: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Semiconductor - Analog and Mixed sector have probably already heard of Magnachip (MX - Free Report) and Monolithic Power (MPWR - 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.

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.

Both Magnachip and Monolithic Power have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

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 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.

MX currently has a forward P/E ratio of 17.02, while MPWR has a forward P/E of 67.20. We also note that MX has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MPWR currently has a PEG ratio of 2.69.

Another notable valuation metric for MX is its P/B ratio of 1.97. 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, MPWR has a P/B of 19.08.

These are just a few of the metrics contributing to MX's Value grade of B and MPWR's Value grade of F.

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


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Monolithic Power Systems, Inc. (MPWR) - free report >>

Magnachip Semiconductor Corp. (MX) - free report >>

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