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LPL or LOGI: Which Is the Better Value Stock Right Now?
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Investors interested in Computer - Peripheral Equipment stocks are likely familiar with LG Display (LPL - Free Report) and Logitech (LOGI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
LG Display and Logitech are both sporting a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LPL currently has a forward P/E ratio of 8.06, while LOGI has a forward P/E of 21.69. We also note that LPL has a PEG ratio of 0.30. 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. LOGI currently has a PEG ratio of 3.45.
Another notable valuation metric for LPL is its P/B ratio of 1.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LOGI has a P/B of 7.9.
These metrics, and several others, help LPL earn a Value grade of A, while LOGI has been given a Value grade of C.
Both LPL and LOGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LPL is the superior value option right now.
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LPL or LOGI: Which Is the Better Value Stock Right Now?
Investors interested in Computer - Peripheral Equipment stocks are likely familiar with LG Display (LPL - Free Report) and Logitech (LOGI - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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.
LG Display and Logitech are both sporting a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LPL currently has a forward P/E ratio of 8.06, while LOGI has a forward P/E of 21.69. We also note that LPL has a PEG ratio of 0.30. 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. LOGI currently has a PEG ratio of 3.45.
Another notable valuation metric for LPL is its P/B ratio of 1.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, LOGI has a P/B of 7.9.
These metrics, and several others, help LPL earn a Value grade of A, while LOGI has been given a Value grade of C.
Both LPL and LOGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LPL is the superior value option right now.