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IDCC vs. MSI: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Wireless Equipment sector have probably already heard of InterDigital (IDCC - Free Report) and Motorola (MSI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, InterDigital has a Zacks Rank of #1 (Strong Buy), while Motorola has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IDCC likely has seen a stronger improvement to its earnings outlook than MSI has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
IDCC currently has a forward P/E ratio of 14.61, while MSI has a forward P/E of 24.74. We also note that IDCC has a PEG ratio of 1.05. 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. MSI currently has a PEG ratio of 2.75.
Another notable valuation metric for IDCC is its P/B ratio of 3.82. 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, MSI has a P/B of 187.24.
These are just a few of the metrics contributing to IDCC's Value grade of B and MSI's Value grade of C.
IDCC sticks out from MSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that IDCC is the better option right now.
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IDCC vs. MSI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Wireless Equipment sector have probably already heard of InterDigital (IDCC - Free Report) and Motorola (MSI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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, InterDigital has a Zacks Rank of #1 (Strong Buy), while Motorola has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that IDCC likely has seen a stronger improvement to its earnings outlook than MSI has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.
IDCC currently has a forward P/E ratio of 14.61, while MSI has a forward P/E of 24.74. We also note that IDCC has a PEG ratio of 1.05. 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. MSI currently has a PEG ratio of 2.75.
Another notable valuation metric for IDCC is its P/B ratio of 3.82. 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, MSI has a P/B of 187.24.
These are just a few of the metrics contributing to IDCC's Value grade of B and MSI's Value grade of C.
IDCC sticks out from MSI in both our Zacks Rank and Style Scores models, so value investors will likely feel that IDCC is the better option right now.