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GLW vs. VCRA: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Communication - Components sector might want to consider either Corning (GLW - Free Report) or Vocera Communications . 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.

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.

Corning has a Zacks Rank of #2 (Buy), while Vocera Communications has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GLW is likely seeing its earnings outlook improve to a greater extent. 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.

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.

GLW currently has a forward P/E ratio of 19, while VCRA has a forward P/E of 67.07. We also note that GLW has a PEG ratio of 2.32. 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. VCRA currently has a PEG ratio of 3.78.

Another notable valuation metric for GLW is its P/B ratio of 2.29. 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, VCRA has a P/B of 6.97.

These metrics, and several others, help GLW earn a Value grade of A, while VCRA has been given a Value grade of F.

GLW stands above VCRA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GLW is the superior value option right now.


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