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LGL vs. NJDCY: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with LGL Group, Inc. (The) (LGL - Free Report) and Nidec Corp. (NJDCY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, LGL Group, Inc. (The) is sporting a Zacks Rank of #2 (Buy), while Nidec Corp. has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LGL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
LGL currently has a forward P/E ratio of 20.30, while NJDCY has a forward P/E of 24.50. We also note that LGL has a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NJDCY currently has a PEG ratio of 1.56.
Another notable valuation metric for LGL is its P/B ratio of 0.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NJDCY has a P/B of 2.93.
Based on these metrics and many more, LGL holds a Value grade of B, while NJDCY has a Value grade of D.
LGL 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 LGL is likely the superior value option right now.
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LGL vs. NJDCY: Which Stock Is the Better Value Option?
Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with LGL Group, Inc. (The) (LGL - Free Report) and Nidec Corp. (NJDCY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, LGL Group, Inc. (The) is sporting a Zacks Rank of #2 (Buy), while Nidec Corp. has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LGL is likely seeing its earnings outlook improve to a greater extent. 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.
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.
LGL currently has a forward P/E ratio of 20.30, while NJDCY has a forward P/E of 24.50. We also note that LGL has a PEG ratio of 0.81. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NJDCY currently has a PEG ratio of 1.56.
Another notable valuation metric for LGL is its P/B ratio of 0.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, NJDCY has a P/B of 2.93.
Based on these metrics and many more, LGL holds a Value grade of B, while NJDCY has a Value grade of D.
LGL 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 LGL is likely the superior value option right now.