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STM vs. NVDA: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Semiconductor - General sector have probably already heard of STMicroelectronics (STM - Free Report) and Nvidia (NVDA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
STMicroelectronics and Nvidia are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STM is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
STM currently has a forward P/E ratio of 10.37, while NVDA has a forward P/E of 34.24. We also note that STM has a PEG ratio of 2.07. 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. NVDA currently has a PEG ratio of 2.36.
Another notable valuation metric for STM is its P/B ratio of 3.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVDA has a P/B of 17.52.
These are just a few of the metrics contributing to STM's Value grade of B and NVDA's Value grade of F.
STM sticks out from NVDA in both our Zacks Rank and Style Scores models, so value investors will likely feel that STM is the better option right now.
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STM vs. NVDA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Semiconductor - General sector have probably already heard of STMicroelectronics (STM - Free Report) and Nvidia (NVDA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
STMicroelectronics and Nvidia are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that STM is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
STM currently has a forward P/E ratio of 10.37, while NVDA has a forward P/E of 34.24. We also note that STM has a PEG ratio of 2.07. 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. NVDA currently has a PEG ratio of 2.36.
Another notable valuation metric for STM is its P/B ratio of 3.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVDA has a P/B of 17.52.
These are just a few of the metrics contributing to STM's Value grade of B and NVDA's Value grade of F.
STM sticks out from NVDA in both our Zacks Rank and Style Scores models, so value investors will likely feel that STM is the better option right now.