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ASX vs. SOTK: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Electronics - Semiconductors sector have probably already heard of ASE Technology Hldg (ASX - Free Report) and SonoTek Corporation (SOTK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
ASE Technology Hldg and SonoTek Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ASX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
ASX currently has a forward P/E ratio of 8.10, while SOTK has a forward P/E of 43.13. We also note that ASX has a PEG ratio of 0.30. 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. SOTK currently has a PEG ratio of 3.59.
Another notable valuation metric for ASX is its P/B ratio of 1.66. 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, SOTK has a P/B of 8.23.
Based on these metrics and many more, ASX holds a Value grade of A, while SOTK has a Value grade of D.
ASX has seen stronger estimate revision activity and sports more attractive valuation metrics than SOTK, so it seems like value investors will conclude that ASX is the superior option right now.
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ASX vs. SOTK: Which Stock Is the Better Value Option?
Investors interested in stocks from the Electronics - Semiconductors sector have probably already heard of ASE Technology Hldg (ASX - Free Report) and SonoTek Corporation (SOTK - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.
ASE Technology Hldg and SonoTek Corporation are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that ASX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
ASX currently has a forward P/E ratio of 8.10, while SOTK has a forward P/E of 43.13. We also note that ASX has a PEG ratio of 0.30. 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. SOTK currently has a PEG ratio of 3.59.
Another notable valuation metric for ASX is its P/B ratio of 1.66. 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, SOTK has a P/B of 8.23.
Based on these metrics and many more, ASX holds a Value grade of A, while SOTK has a Value grade of D.
ASX has seen stronger estimate revision activity and sports more attractive valuation metrics than SOTK, so it seems like value investors will conclude that ASX is the superior option right now.