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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 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Kyocera and BWX Technologies are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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.

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 19.59, while BWXT has a forward P/E of 22.61. We also note that KYOCY has a PEG ratio of 3.59. 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. BWXT currently has a PEG ratio of 4.49.

Another notable valuation metric for KYOCY is its P/B ratio of 0.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BWXT has a P/B of 7.67.

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

Both KYOCY and BWXT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KYOCY is the superior value option right now.


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