Back to top

Image: Bigstock

APELY or VPG: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Alps Electric (APELY - Free Report) and Vishay Precision (VPG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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, Alps Electric is sporting a Zacks Rank of #2 (Buy), while Vishay Precision has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that APELY 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 are also interested in a number of tried-and-true valuation metrics that help show when 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.

APELY currently has a forward P/E ratio of 26.08, while VPG has a forward P/E of 45.44. We also note that APELY has a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VPG currently has a PEG ratio of 2.27.

Another notable valuation metric for APELY is its P/B ratio of 0.94. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, VPG has a P/B of 1.22.

Based on these metrics and many more, APELY holds a Value grade of A, while VPG has a Value grade of C.

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


See More Zacks Research for These Tickers


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


Vishay Precision Group, Inc. (VPG) - free report >>

Alps Electric (APELY) - free report >>

Published in