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CARR vs. HOCPY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or Hoya Corp. (HOCPY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Carrier Global is sporting a Zacks Rank of #2 (Buy), while Hoya Corp. has a Zacks Rank of #4 (Sell). This means that CARR'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 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.
CARR currently has a forward P/E ratio of 18.69, while HOCPY has a forward P/E of 32.38. We also note that CARR has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HOCPY currently has a PEG ratio of 2.19.
Another notable valuation metric for CARR is its P/B ratio of 4.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HOCPY has a P/B of 5.76.
These metrics, and several others, help CARR earn a Value grade of B, while HOCPY has been given a Value grade of D.
CARR 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 CARR is likely the superior value option right now.
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CARR vs. HOCPY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Carrier Global (CARR - Free Report) or Hoya Corp. (HOCPY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Carrier Global is sporting a Zacks Rank of #2 (Buy), while Hoya Corp. has a Zacks Rank of #4 (Sell). This means that CARR'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 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.
CARR currently has a forward P/E ratio of 18.69, while HOCPY has a forward P/E of 32.38. We also note that CARR has a PEG ratio of 1.76. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HOCPY currently has a PEG ratio of 2.19.
Another notable valuation metric for CARR is its P/B ratio of 4.98. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, HOCPY has a P/B of 5.76.
These metrics, and several others, help CARR earn a Value grade of B, while HOCPY has been given a Value grade of D.
CARR 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 CARR is likely the superior value option right now.