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DAKT or KLAC: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Daktronics (DAKT - Free Report) or KLA (KLAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Daktronics has a Zacks Rank of #2 (Buy), while KLA 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 DAKT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DAKT currently has a forward P/E ratio of 16.47, while KLAC has a forward P/E of 33.71. We also note that DAKT has a PEG ratio of 0.55. 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. KLAC currently has a PEG ratio of 3.25.
Another notable valuation metric for DAKT is its P/B ratio of 3.06. 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, KLAC has a P/B of 31.47.
Based on these metrics and many more, DAKT holds a Value grade of A, while KLAC has a Value grade of D.
DAKT stands above KLAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DAKT is the superior value option right now.
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DAKT or KLAC: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Daktronics (DAKT - Free Report) or KLA (KLAC - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Daktronics has a Zacks Rank of #2 (Buy), while KLA 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 DAKT is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
DAKT currently has a forward P/E ratio of 16.47, while KLAC has a forward P/E of 33.71. We also note that DAKT has a PEG ratio of 0.55. 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. KLAC currently has a PEG ratio of 3.25.
Another notable valuation metric for DAKT is its P/B ratio of 3.06. 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, KLAC has a P/B of 31.47.
Based on these metrics and many more, DAKT holds a Value grade of A, while KLAC has a Value grade of D.
DAKT stands above KLAC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DAKT is the superior value option right now.