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

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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Alps Electric (APELY - Free Report) and Vishay Precision (VPG - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Right now, Alps Electric is sporting a Zacks Rank of #2 (Buy), while Vishay Precision has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APELY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

APELY currently has a forward P/E ratio of 25.23, while VPG has a forward P/E of 56.83. We also note that APELY has a PEG ratio of 0.65. 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 2.84.

Another notable valuation metric for APELY is its P/B ratio of 0.91. 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, VPG has a P/B of 1.53.

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

APELY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that APELY is likely the superior value option right now.


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

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