Back to top

Image: Bigstock

APELY vs. HOCPY: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Alps Alpine Co Ltd. - Unsponsored ADR (APELY - Free Report) and Hoya Corp. (HOCPY - 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.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Alps Alpine Co Ltd. - Unsponsored ADR and Hoya Corp. are holding a Zacks Rank of #1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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 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.

APELY currently has a forward P/E ratio of 11.87, while HOCPY has a forward P/E of 31.60. We also note that APELY has a PEG ratio of 1.52. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HOCPY currently has a PEG ratio of 3.45.

Another notable valuation metric for APELY is its P/B ratio of 0.93. 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 8.58.

These metrics, and several others, help APELY earn a Value grade of A, while HOCPY has been given a Value grade of D.

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

Published in