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PCRFY vs. SONO: Which Stock Is the Better Value Option?

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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 offers value investors a better bang for their buck right now? We'll need to 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. has a Zacks Rank of #1 (Strong Buy), while Sonos has a Zacks Rank of #3 (Hold) right now. This means that PCRFY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

PCRFY currently has a forward P/E ratio of 13.02, while SONO has a forward P/E of 18.83. We also note that PCRFY has a PEG ratio of 0.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SONO currently has a PEG ratio of 4.85.

Another notable valuation metric for PCRFY is its P/B ratio of 1.05. 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 3.49.

Based on these metrics and many more, PCRFY holds a Value grade of A, while SONO has 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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