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STM or TXN: Which Is the Better Value Stock Right Now?
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Investors interested in Semiconductor - General stocks are likely familiar with STMicroelectronics (STM - Free Report) and Texas Instruments (TXN - 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.
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 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, STMicroelectronics has a Zacks Rank of #2 (Buy), while Texas Instruments has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STM likely has seen a stronger improvement to its earnings outlook than TXN has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
STM currently has a forward P/E ratio of 12.16, while TXN has a forward P/E of 23.39. We also note that STM has a PEG ratio of 2.43. 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. TXN currently has a PEG ratio of 2.51.
Another notable valuation metric for STM is its P/B ratio of 3.50. 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, TXN has a P/B of 10.95.
These are just a few of the metrics contributing to STM's Value grade of B and TXN's Value grade of C.
STM stands above TXN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STM is the superior value option right now.
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STM or TXN: Which Is the Better Value Stock Right Now?
Investors interested in Semiconductor - General stocks are likely familiar with STMicroelectronics (STM - Free Report) and Texas Instruments (TXN - 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.
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 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, STMicroelectronics has a Zacks Rank of #2 (Buy), while Texas Instruments has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that STM likely has seen a stronger improvement to its earnings outlook than TXN has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
STM currently has a forward P/E ratio of 12.16, while TXN has a forward P/E of 23.39. We also note that STM has a PEG ratio of 2.43. 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. TXN currently has a PEG ratio of 2.51.
Another notable valuation metric for STM is its P/B ratio of 3.50. 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, TXN has a P/B of 10.95.
These are just a few of the metrics contributing to STM's Value grade of B and TXN's Value grade of C.
STM stands above TXN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that STM is the superior value option right now.