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APELY vs. VPG: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Alps Electric (APELY - Free Report) or 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.

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 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 #3 (Hold). Investors should feel comfortable knowing that APELY likely has seen a stronger improvement to its earnings outlook than VPG has recently. 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 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 25.05, while VPG has a forward P/E of 41.82. 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 2.09.

Another notable valuation metric for APELY is its P/B ratio of 0.97. 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 1.72.

These metrics, and several others, help APELY earn a Value grade of A, while VPG has been given a Value grade of C.

APELY has seen stronger estimate revision activity and sports more attractive valuation metrics than VPG, so it seems like value investors will conclude that APELY is the superior option right now.


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

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