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VPG vs. LFUS: Which Stock Is the Better Value Option?

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Vishay Precision (VPG - Free Report) and Littelfuse (LFUS - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Vishay Precision has a Zacks Rank of #2 (Buy), while Littelfuse has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VPG likely has seen a stronger improvement to its earnings outlook than LFUS has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

VPG currently has a forward P/E ratio of 15.91, while LFUS has a forward P/E of 18.58. We also note that VPG has a PEG ratio of 0.80. 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. LFUS currently has a PEG ratio of 1.55.

Another notable valuation metric for VPG is its P/B ratio of 2.05. 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, LFUS has a P/B of 2.94.

These are just a few of the metrics contributing to VPG's Value grade of B and LFUS's Value grade of C.

VPG 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 VPG is likely the superior value option right now.


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Vishay Precision Group, Inc. (VPG) - free report >>

Littelfuse, Inc. (LFUS) - free report >>

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