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MKSI or HOCPY: Which Is the Better Value Stock Right Now?

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Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both MKS (MKSI - Free Report) and Hoya Corp. (HOCPY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both MKS and Hoya Corp. are sporting a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

MKSI currently has a forward P/E ratio of 18.85, while HOCPY has a forward P/E of 29.93. We also note that MKSI has a PEG ratio of 0.52. 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. HOCPY currently has a PEG ratio of 3.27.

Another notable valuation metric for MKSI is its P/B ratio of 5.58. 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, HOCPY has a P/B of 7.88.

Based on these metrics and many more, MKSI holds a Value grade of B, while HOCPY has a Value grade of D.

Both MKSI and HOCPY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MKSI is the superior value option right now.

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