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UMC vs. NVMI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either United Microelectronics Corporation (UMC - Free Report) or Nova Ltd. (NVMI - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, United Microelectronics Corporation is sporting a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). This means that UMC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
UMC currently has a forward P/E ratio of 13.77, while NVMI has a forward P/E of 30.55. We also note that UMC has a PEG ratio of 1.56. 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. NVMI currently has a PEG ratio of 2.10.
Another notable valuation metric for UMC is its P/B ratio of 1.54. 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, NVMI has a P/B of 7.71.
These are just a few of the metrics contributing to UMC's Value grade of A and NVMI's Value grade of D.
UMC stands above NVMI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UMC is the superior value option right now.
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UMC vs. NVMI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either United Microelectronics Corporation (UMC - Free Report) or Nova Ltd. (NVMI - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, United Microelectronics Corporation is sporting a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). This means that UMC's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle 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.
UMC currently has a forward P/E ratio of 13.77, while NVMI has a forward P/E of 30.55. We also note that UMC has a PEG ratio of 1.56. 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. NVMI currently has a PEG ratio of 2.10.
Another notable valuation metric for UMC is its P/B ratio of 1.54. 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, NVMI has a P/B of 7.71.
These are just a few of the metrics contributing to UMC's Value grade of A and NVMI's Value grade of D.
UMC stands above NVMI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UMC is the superior value option right now.