We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GFS or MRVL: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either GlobalFoundries Inc. (GFS - Free Report) or Marvell Technology (MRVL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, both GlobalFoundries Inc. and Marvell Technology are holding a Zacks Rank of #2 (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. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GFS currently has a forward P/E ratio of 18.41, while MRVL has a forward P/E of 31.69. We also note that GFS has a PEG ratio of 0.90. 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. MRVL currently has a PEG ratio of 2.88.
Another notable valuation metric for GFS is its P/B ratio of 1.66. 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, MRVL has a P/B of 6.32.
These are just a few of the metrics contributing to GFS's Value grade of B and MRVL's Value grade of F.
Both GFS and MRVL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GFS is the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
GFS or MRVL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either GlobalFoundries Inc. (GFS - Free Report) or Marvell Technology (MRVL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
Currently, both GlobalFoundries Inc. and Marvell Technology are holding a Zacks Rank of #2 (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. But this is only part of the picture for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GFS currently has a forward P/E ratio of 18.41, while MRVL has a forward P/E of 31.69. We also note that GFS has a PEG ratio of 0.90. 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. MRVL currently has a PEG ratio of 2.88.
Another notable valuation metric for GFS is its P/B ratio of 1.66. 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, MRVL has a P/B of 6.32.
These are just a few of the metrics contributing to GFS's Value grade of B and MRVL's Value grade of F.
Both GFS and MRVL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GFS is the superior value option right now.