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PCRFY vs. SONO: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Audio Video Production stocks have likely encountered both Panasonic Corp. and Sonos (SONO - 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.

Panasonic Corp. and Sonos are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PCRFY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

PCRFY currently has a forward P/E ratio of 13.05, while SONO has a forward P/E of 205.57. We also note that PCRFY has a PEG ratio of 0.54. 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. SONO currently has a PEG ratio of 52.98.

Another notable valuation metric for PCRFY is its P/B ratio of 1.14. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SONO has a P/B of 3.30.

These metrics, and several others, help PCRFY earn a Value grade of A, while SONO has been given a Value grade of D.

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


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