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LPL vs. LOGI: Which Stock Is the Better Value Option?

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Investors with an interest in Computer - Peripheral Equipment stocks have likely encountered both LG Display (LPL - Free Report) and Logitech (LOGI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, LG Display has a Zacks Rank of #2 (Buy), while Logitech has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LPL is likely seeing its earnings outlook improve to a greater extent. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

LPL currently has a forward P/E ratio of 6.23, while LOGI has a forward P/E of 21.54. We also note that LPL has a PEG ratio of 0.23. 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. LOGI currently has a PEG ratio of 18.26.

Another notable valuation metric for LPL is its P/B ratio of 0.7. 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, LOGI has a P/B of 7.19.

Based on these metrics and many more, LPL holds a Value grade of A, while LOGI has a Value grade of D.

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


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Logitech International S.A. (LOGI) - free report >>

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