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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 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, InterDigital has a Zacks Rank of #2 (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 16.74, while MSI has a forward P/E of 25.87. We also note that IDCC has a PEG ratio of 0.96. 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 2.81.
Another notable valuation metric for IDCC is its P/B ratio of 4.75. 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, MSI has a P/B of 73.83.
These are just a few of the metrics contributing to IDCC's Value grade of B and MSI's Value grade of D.
IDCC 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 IDCC is likely the superior value 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 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, InterDigital has a Zacks Rank of #2 (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 16.74, while MSI has a forward P/E of 25.87. We also note that IDCC has a PEG ratio of 0.96. 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 2.81.
Another notable valuation metric for IDCC is its P/B ratio of 4.75. 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, MSI has a P/B of 73.83.
These are just a few of the metrics contributing to IDCC's Value grade of B and MSI's Value grade of D.
IDCC 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 IDCC is likely the superior value option right now.