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KYOCY vs. BWXT: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Kyocera is sporting a Zacks Rank of #1 (Strong Buy), while BWX Technologies has a Zacks Rank of #3 (Hold). This means that KYOCY'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 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.

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.

KYOCY currently has a forward P/E ratio of 14.79, while BWXT has a forward P/E of 17.89. We also note that KYOCY has a PEG ratio of 1.69. 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 2.74.

Another notable valuation metric for KYOCY is its P/B ratio of 0.76. 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, BWXT has a P/B of 7.44.

These are just a few of the metrics contributing to KYOCY's Value grade of A and BWXT's Value grade of C.

KYOCY sticks out from BWXT in both our Zacks Rank and Style Scores models, so value investors will likely feel that KYOCY is the better option right now.


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