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LFUS vs. TEL: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Littelfuse (LFUS - Free Report) or TE Connectivity (TEL - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Littelfuse and TE Connectivity are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
LFUS currently has a forward P/E ratio of 18.37, while TEL has a forward P/E of 19.89. We also note that LFUS has a PEG ratio of 1.53. 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. TEL currently has a PEG ratio of 1.91.
Another notable valuation metric for LFUS is its P/B ratio of 3.36. 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, TEL has a P/B of 4.25.
Based on these metrics and many more, LFUS holds a Value grade of B, while TEL has a Value grade of C.
Both LFUS and TEL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LFUS is the superior value option right now.
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LFUS vs. TEL: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Littelfuse (LFUS - Free Report) or TE Connectivity (TEL - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both Littelfuse and TE Connectivity are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
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.
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.
LFUS currently has a forward P/E ratio of 18.37, while TEL has a forward P/E of 19.89. We also note that LFUS has a PEG ratio of 1.53. 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. TEL currently has a PEG ratio of 1.91.
Another notable valuation metric for LFUS is its P/B ratio of 3.36. 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, TEL has a P/B of 4.25.
Based on these metrics and many more, LFUS holds a Value grade of B, while TEL has a Value grade of C.
Both LFUS and TEL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LFUS is the superior value option right now.