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

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Omron Corp. (OMRNY - Free Report) and Vishay Precision (VPG - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Omron Corp. and Vishay Precision are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that OMRNY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

OMRNY currently has a forward P/E ratio of 17.71, while VPG has a forward P/E of 64.78. We also note that OMRNY has a PEG ratio of 0.34. 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. VPG currently has a PEG ratio of 3.24.

Another notable valuation metric for OMRNY is its P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VPG has a P/B of 1.94.

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

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.

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