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IFNNY vs. CRUS: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Infineon Technologies AG (IFNNY - Free Report) or Cirrus Logic (CRUS - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Cirrus Logic has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IFNNY has an improving earnings outlook. But this is just one factor that value investors are interested in.

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.

IFNNY currently has a forward P/E ratio of 12.43, while CRUS has a forward P/E of 13.22. We also note that IFNNY has a PEG ratio of 0.52. 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. CRUS currently has a PEG ratio of 4.85.

Another notable valuation metric for IFNNY is its P/B ratio of 2.30. 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, CRUS has a P/B of 2.59.

Based on these metrics and many more, IFNNY holds a Value grade of B, while CRUS has a Value grade of C.

IFNNY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IFNNY is likely the superior value option right now.


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