We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SNE or DLB: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Audio Video Production sector might want to consider either Sony or Dolby Laboratories (DLB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, Sony is sporting a Zacks Rank of #1 (Strong Buy), while Dolby Laboratories has a Zacks Rank of #3 (Hold). This means that SNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SNE currently has a forward P/E ratio of 12.78, while DLB has a forward P/E of 21.19. We also note that SNE has a PEG ratio of 1.35. 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. DLB currently has a PEG ratio of 1.77.
Another notable valuation metric for SNE is its P/B ratio of 1.90. 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, DLB has a P/B of 3.16.
These metrics, and several others, help SNE earn a Value grade of B, while DLB has been given a Value grade of C.
SNE stands above DLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNE is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SNE or DLB: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Audio Video Production sector might want to consider either Sony or Dolby Laboratories (DLB - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.
Right now, Sony is sporting a Zacks Rank of #1 (Strong Buy), while Dolby Laboratories has a Zacks Rank of #3 (Hold). This means that SNE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
SNE currently has a forward P/E ratio of 12.78, while DLB has a forward P/E of 21.19. We also note that SNE has a PEG ratio of 1.35. 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. DLB currently has a PEG ratio of 1.77.
Another notable valuation metric for SNE is its P/B ratio of 1.90. 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, DLB has a P/B of 3.16.
These metrics, and several others, help SNE earn a Value grade of B, while DLB has been given a Value grade of C.
SNE stands above DLB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNE is the superior value option right now.