Back to top

Image: Bigstock

APELY vs. OLED: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Alps Electric (APELY - Free Report) and Universal Display Corp. (OLED - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Alps Electric and Universal Display Corp. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that APELY likely has seen a stronger improvement to its earnings outlook than OLED has recently. But this is just one piece of the puzzle for value investors.

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.

APELY currently has a forward P/E ratio of 17.94, while OLED has a forward P/E of 31.26. We also note that APELY has a PEG ratio of 0.46. 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. OLED currently has a PEG ratio of 1.71.

Another notable valuation metric for APELY is its P/B ratio of 0.78. 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, OLED has a P/B of 4.44.

These are just a few of the metrics contributing to APELY's Value grade of A and OLED's Value grade of D.

APELY 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 APELY is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alps Electric (APELY) - free report >>

Universal Display Corporation (OLED) - free report >>

Published in