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KYOCY vs. BWXT: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Kyocera (KYOCY - Free Report) and BWX Technologies (BWXT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Kyocera has a Zacks Rank of #1 (Strong Buy), while BWX Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that KYOCY likely has seen a stronger improvement to its earnings outlook than BWXT has recently. 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.

KYOCY currently has a forward P/E ratio of 14.66, while BWXT has a forward P/E of 16.14. We also note that KYOCY has a PEG ratio of 1.67. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BWXT currently has a PEG ratio of 2.47.

Another notable valuation metric for KYOCY is its P/B ratio of 0.75. 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, BWXT has a P/B of 6.71.

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

KYOCY has seen stronger estimate revision activity and sports more attractive valuation metrics than BWXT, so it seems like value investors will conclude that KYOCY is the superior option right now.


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