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UMC or LSCC: Which Is the Better Value Stock Right Now?
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Investors with an interest in Electronics - Semiconductors stocks have likely encountered both United Microelectronics Corporation (UMC - Free Report) and Lattice Semiconductor (LSCC - 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, United Microelectronics Corporation is sporting a Zacks Rank of #2 (Buy), while Lattice Semiconductor has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UMC has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
UMC currently has a forward P/E ratio of 21.79, while LSCC has a forward P/E of 74.37. We also note that UMC has a PEG ratio of 1.81. 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. LSCC currently has a PEG ratio of 2.43.
Another notable valuation metric for UMC is its P/B ratio of 2.4. 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 21.82.
Based on these metrics and many more, UMC holds a Value grade of B, while LSCC has a Value grade of F.
UMC stands above LSCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UMC is the superior value option right now.
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UMC or LSCC: Which Is the Better Value Stock Right Now?
Investors with an interest in Electronics - Semiconductors stocks have likely encountered both United Microelectronics Corporation (UMC - Free Report) and Lattice Semiconductor (LSCC - 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, United Microelectronics Corporation is sporting a Zacks Rank of #2 (Buy), while Lattice Semiconductor has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that UMC has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
UMC currently has a forward P/E ratio of 21.79, while LSCC has a forward P/E of 74.37. We also note that UMC has a PEG ratio of 1.81. 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. LSCC currently has a PEG ratio of 2.43.
Another notable valuation metric for UMC is its P/B ratio of 2.4. 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 21.82.
Based on these metrics and many more, UMC holds a Value grade of B, while LSCC has a Value grade of F.
UMC stands above LSCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that UMC is the superior value option right now.