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IDCC or QCOM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Wireless Equipment sector have probably already heard of InterDigital (IDCC - Free Report) and Qualcomm (QCOM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, InterDigital is sporting a Zacks Rank of #2 (Buy), while Qualcomm has a Zacks Rank of #3 (Hold). This means that IDCC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
IDCC currently has a forward P/E ratio of 16.16, while QCOM has a forward P/E of 17.61. We also note that IDCC has a PEG ratio of 0.93. 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. QCOM currently has a PEG ratio of 1.84.
Another notable valuation metric for IDCC is its P/B ratio of 4.59. 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, QCOM has a P/B of 8.15.
These metrics, and several others, help IDCC earn a Value grade of A, while QCOM has been given a Value grade of D.
IDCC has seen stronger estimate revision activity and sports more attractive valuation metrics than QCOM, so it seems like value investors will conclude that IDCC is the superior option right now.
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IDCC or QCOM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Wireless Equipment sector have probably already heard of InterDigital (IDCC - Free Report) and Qualcomm (QCOM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, InterDigital is sporting a Zacks Rank of #2 (Buy), while Qualcomm has a Zacks Rank of #3 (Hold). This means that IDCC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
IDCC currently has a forward P/E ratio of 16.16, while QCOM has a forward P/E of 17.61. We also note that IDCC has a PEG ratio of 0.93. 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. QCOM currently has a PEG ratio of 1.84.
Another notable valuation metric for IDCC is its P/B ratio of 4.59. 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, QCOM has a P/B of 8.15.
These metrics, and several others, help IDCC earn a Value grade of A, while QCOM has been given a Value grade of D.
IDCC has seen stronger estimate revision activity and sports more attractive valuation metrics than QCOM, so it seems like value investors will conclude that IDCC is the superior option right now.