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DKILY vs. CTRL: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either DAIKIN INDS LTD (DKILY - Free Report) or Control4 . 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both DAIKIN INDS LTD and Control4 are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

DKILY currently has a forward P/E ratio of 19.16, while CTRL has a forward P/E of 30.20. We also note that DKILY has a PEG ratio of 2.55. 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. CTRL currently has a PEG ratio of 2.88.

Another notable valuation metric for DKILY is its P/B ratio of 2.82. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CTRL has a P/B of 4.

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

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


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