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

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Kyocera (KYOCY - Free Report) or TE Connectivity (TEL - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Kyocera has a Zacks Rank of #2 (Buy), while TE Connectivity has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that KYOCY is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

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.

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 15.39, while TEL has a forward P/E of 18.90. We also note that KYOCY has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TEL currently has a PEG ratio of 2.75.

Another notable valuation metric for KYOCY is its P/B ratio of 0.77. 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, TEL has a P/B of 3.45.

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

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


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