Back to top

Image: Bigstock

OMRNY 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 Omron Corp. (OMRNY - Free Report) and Vishay Precision (VPG - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.

Omron Corp. and Vishay Precision are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that OMRNY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

OMRNY currently has a forward P/E ratio of 22.86, while VPG has a forward P/E of 56.28. We also note that OMRNY has a PEG ratio of 0.44. 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. VPG currently has a PEG ratio of 2.81.

Another notable valuation metric for OMRNY 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 1.69.

These are just a few of the metrics contributing to OMRNY's Value grade of B and VPG's Value grade of F.

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

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in