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NOK or JNPR: Which Is the Better Value Stock Right Now?

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Investors with an interest in Wireless Equipment stocks have likely encountered both Nokia (NOK - Free Report) and Juniper Networks (JNPR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Nokia has a Zacks Rank of #2 (Buy), while Juniper Networks has a Zacks Rank of #4 (Sell) right now. This means that NOK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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 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.

NOK currently has a forward P/E ratio of 10.37, while JNPR has a forward P/E of 18.80. We also note that NOK has a PEG ratio of 1.23. 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. JNPR currently has a PEG ratio of 5.28.

Another notable valuation metric for NOK is its P/B ratio of 0.93. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, JNPR has a P/B of 2.68.

Based on these metrics and many more, NOK holds a Value grade of A, while JNPR has a Value grade of D.

NOK has seen stronger estimate revision activity and sports more attractive valuation metrics than JNPR, so it seems like value investors will conclude that NOK is the superior option right now.


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