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KYOCY or OMRNY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Kyocera (KYOCY - Free Report) and Omron Corp. (OMRNY - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Kyocera has a Zacks Rank of #2 (Buy), while Omron Corp. has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that KYOCY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

KYOCY currently has a forward P/E ratio of 26.14, while OMRNY has a forward P/E of 39.69. We also note that KYOCY has a PEG ratio of 3.67. 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. OMRNY currently has a PEG ratio of 18.72.

Another notable valuation metric for KYOCY is its P/B ratio of 0.94. 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, OMRNY has a P/B of 1.46.

Based on these metrics and many more, KYOCY holds a Value grade of A, while OMRNY has a Value grade of C.

KYOCY stands above OMRNY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KYOCY is the superior value option right now.


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