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UEIC vs. HAYW: Which Stock Is the Better Value Option?

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Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Universal Electronics (UEIC - Free Report) and Hayward Holdings, Inc. (HAYW - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Universal Electronics is sporting a Zacks Rank of #2 (Buy), while Hayward Holdings, Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UEIC has an improving earnings outlook. But this is only part of the picture for value investors.

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.

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.

UEIC currently has a forward P/E ratio of 12.98, while HAYW has a forward P/E of 20.06. We also note that UEIC has a PEG ratio of 0.87. 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. HAYW currently has a PEG ratio of 2.85.

Another notable valuation metric for UEIC is its P/B ratio of 0.59. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, HAYW has a P/B of 2.18.

These are just a few of the metrics contributing to UEIC's Value grade of A and HAYW's Value grade of C.

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


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