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IFNNY vs. LSCC: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY - Free Report) and Lattice Semiconductor (LSCC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Infineon Technologies AG and Lattice Semiconductor are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
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.
IFNNY currently has a forward P/E ratio of 26.28, while LSCC has a forward P/E of 54.71. We also note that IFNNY has a PEG ratio of 1.02. 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. LSCC currently has a PEG ratio of 1.97.
Another notable valuation metric for IFNNY is its P/B ratio of 3.39. 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, LSCC has a P/B of 15.59.
Based on these metrics and many more, IFNNY holds a Value grade of B, while LSCC has a Value grade of F.
Both IFNNY and LSCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFNNY is the superior value option right now.
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IFNNY vs. LSCC: Which Stock Is the Better Value Option?
Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY - Free Report) and Lattice Semiconductor (LSCC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Infineon Technologies AG and Lattice Semiconductor are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.
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.
IFNNY currently has a forward P/E ratio of 26.28, while LSCC has a forward P/E of 54.71. We also note that IFNNY has a PEG ratio of 1.02. 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. LSCC currently has a PEG ratio of 1.97.
Another notable valuation metric for IFNNY is its P/B ratio of 3.39. 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, LSCC has a P/B of 15.59.
Based on these metrics and many more, IFNNY holds a Value grade of B, while LSCC has a Value grade of F.
Both IFNNY and LSCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFNNY is the superior value option right now.