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MKSI vs. ENTG: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Manufacturing Machinery stocks are likely familiar with MKS Instruments (MKSI - Free Report) and Entegris (ENTG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
MKS Instruments and Entegris are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MKSI is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MKSI currently has a forward P/E ratio of 18.20, while ENTG has a forward P/E of 35.33. We also note that MKSI has a PEG ratio of 0.67. 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. ENTG currently has a PEG ratio of 1.74.
Another notable valuation metric for MKSI is its P/B ratio of 3.18. 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, ENTG has a P/B of 4.43.
Based on these metrics and many more, MKSI holds a Value grade of A, while ENTG has a Value grade of D.
MKSI 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 MKSI is likely the superior value option right now.
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MKSI vs. ENTG: Which Stock Is the Better Value Option?
Investors interested in Electronics - Manufacturing Machinery stocks are likely familiar with MKS Instruments (MKSI - Free Report) and Entegris (ENTG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
MKS Instruments and Entegris are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MKSI is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
MKSI currently has a forward P/E ratio of 18.20, while ENTG has a forward P/E of 35.33. We also note that MKSI has a PEG ratio of 0.67. 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. ENTG currently has a PEG ratio of 1.74.
Another notable valuation metric for MKSI is its P/B ratio of 3.18. 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, ENTG has a P/B of 4.43.
Based on these metrics and many more, MKSI holds a Value grade of A, while ENTG has a Value grade of D.
MKSI 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 MKSI is likely the superior value option right now.