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NOK or SWIR: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Wireless Equipment sector have probably already heard of Nokia (NOK - Free Report) and Sierra Wireless . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Nokia and Sierra Wireless are holding 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 factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
NOK currently has a forward P/E ratio of 12.84, while SWIR has a forward P/E of 61.31. We also note that NOK has a PEG ratio of 1.23. 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. SWIR currently has a PEG ratio of 4.90.
Another notable valuation metric for NOK is its P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWIR has a P/B of 2.23.
These are just a few of the metrics contributing to NOK's Value grade of A and SWIR's Value grade of D.
Both NOK and SWIR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NOK is the superior value option right now.
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NOK or SWIR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Wireless Equipment sector have probably already heard of Nokia (NOK - Free Report) and Sierra Wireless . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Nokia and Sierra Wireless are holding 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 factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
NOK currently has a forward P/E ratio of 12.84, while SWIR has a forward P/E of 61.31. We also note that NOK has a PEG ratio of 1.23. 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. SWIR currently has a PEG ratio of 4.90.
Another notable valuation metric for NOK is its P/B ratio of 1.46. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SWIR has a P/B of 2.23.
These are just a few of the metrics contributing to NOK's Value grade of A and SWIR's Value grade of D.
Both NOK and SWIR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NOK is the superior value option right now.