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FLEX or CTRL: 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 Flex (FLEX - Free Report) and Control4 . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Flex has a Zacks Rank of #2 (Buy), while Control4 has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that FLEX likely has seen a stronger improvement to its earnings outlook than CTRL has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

FLEX currently has a forward P/E ratio of 11.52, while CTRL has a forward P/E of 19. We also note that FLEX has a PEG ratio of 0.58. 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. CTRL currently has a PEG ratio of 1.81.

Another notable valuation metric for FLEX is its P/B ratio of 2.50. 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, CTRL has a P/B of 3.90.

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

FLEX sticks out from CTRL in both our Zacks Rank and Style Scores models, so value investors will likely feel that FLEX is the better option right now.


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