Investors looking for stocks in the Computer - Peripheral Equipment sector might want to consider either Immersion (IMMR - Free Report) or Logitech (LOGI - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Immersion and Logitech are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IMMR has an improving earnings outlook. But this is just one factor that value investors are interested in.
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.
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.
IMMR currently has a forward P/E ratio of 7.72, while LOGI has a forward P/E of 24.52. We also note that IMMR has a PEG ratio of 0.51. 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. LOGI currently has a PEG ratio of 3.07.
Another notable valuation metric for IMMR is its P/B ratio of 4.52. 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, LOGI has a P/B of 6.86.
Based on these metrics and many more, IMMR holds a Value grade of B, while LOGI has a Value grade of F.
IMMR is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IMMR is likely the superior value option right now.