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QCOM or MSI: 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 Qualcomm (QCOM - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Qualcomm has a Zacks Rank of #2 (Buy), while Motorola has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QCOM is likely seeing its earnings outlook improve to a greater extent. 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.
QCOM currently has a forward P/E ratio of 13.72, while MSI has a forward P/E of 34.39. We also note that QCOM has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MSI currently has a PEG ratio of 3.41.
Another notable valuation metric for QCOM is its P/B ratio of 6.48. 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, MSI has a P/B of 58.47.
Based on these metrics and many more, QCOM holds a Value grade of B, while MSI has a Value grade of D.
QCOM has seen stronger estimate revision activity and sports more attractive valuation metrics than MSI, so it seems like value investors will conclude that QCOM is the superior option right now.
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QCOM or MSI: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Wireless Equipment sector have probably already heard of Qualcomm (QCOM - 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.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Qualcomm has a Zacks Rank of #2 (Buy), while Motorola has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that QCOM is likely seeing its earnings outlook improve to a greater extent. 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.
QCOM currently has a forward P/E ratio of 13.72, while MSI has a forward P/E of 34.39. We also note that QCOM has a PEG ratio of 2.09. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MSI currently has a PEG ratio of 3.41.
Another notable valuation metric for QCOM is its P/B ratio of 6.48. 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, MSI has a P/B of 58.47.
Based on these metrics and many more, QCOM holds a Value grade of B, while MSI has a Value grade of D.
QCOM has seen stronger estimate revision activity and sports more attractive valuation metrics than MSI, so it seems like value investors will conclude that QCOM is the superior option right now.