Back to top

Image: Bigstock

DKILY vs. HOCPY: Which Stock Should Value Investors Buy Now?

Read MoreHide Full Article

Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Daikin Industries (DKILY - Free Report) and 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.

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.

Currently, Daikin Industries has a Zacks Rank of #2 (Buy), while Hoya Corp. 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 DKILY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

DKILY currently has a forward P/E ratio of 18.85, while HOCPY has a forward P/E of 28.58. We also note that DKILY has a PEG ratio of 2.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HOCPY currently has a PEG ratio of 2.45.

Another notable valuation metric for DKILY is its P/B ratio of 1.9. 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, HOCPY has a P/B of 6.71.

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

DKILY sticks out from HOCPY in both our Zacks Rank and Style Scores models, so value investors will likely feel that DKILY is the better option right now.


See More Zacks Research for These Tickers


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


Hoya Corp. (HOCPY) - free report >>

Daikin Industries (DKILY) - free report >>

Published in