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BELFB vs. HOCPY: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Bel Fuse (BELFB - Free Report) or Hoya Corp. (HOCPY - 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.

Right now, Bel Fuse is sporting a Zacks Rank of #2 (Buy), while Hoya Corp. has a Zacks Rank of #3 (Hold). This means that BELFB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

BELFB currently has a forward P/E ratio of 13.85, while HOCPY has a forward P/E of 35.08. We also note that BELFB has a PEG ratio of 0.92. 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. HOCPY currently has a PEG ratio of 2.48.

Another notable valuation metric for BELFB is its P/B ratio of 2.67. 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, HOCPY has a P/B of 6.99.

Based on these metrics and many more, BELFB holds a Value grade of A, while HOCPY has a Value grade of F.

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


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