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AMKR 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 Amkor Technology (AMKR - 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.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Amkor Technology has a Zacks Rank of #1 (Strong 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 AMKR has an improving earnings outlook. But this is just one piece of the puzzle 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.

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.

AMKR currently has a forward P/E ratio of 17.82, while LSCC has a forward P/E of 50.04. We also note that AMKR has a PEG ratio of 0.57. 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 0.85.

Another notable valuation metric for AMKR is its P/B ratio of 2.46. 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, LSCC has a P/B of 18.53.

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

AMKR stands above LSCC thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AMKR is the superior value option right now.

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