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

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Investors interested in stocks from the Communication - Components sector have probably already heard of Corning (GLW - Free Report) and 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Corning and Vocera Communications are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, 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 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.

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 20.84, while VCRA has a forward P/E of 84.72. We also note that GLW 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. VCRA currently has a PEG ratio of 4.54.

Another notable valuation metric for GLW is its P/B ratio of 2.51. 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, VCRA has a P/B of 6.98.

Based on these metrics and many more, GLW holds a Value grade of B, while VCRA has a Value grade of F.

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


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