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ATEYY or ORBK: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Electronics - Measuring Instruments sector might want to consider either Advantest Corp. (ATEYY - Free Report) or Orbotech . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 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.

Currently, Advantest Corp. has a Zacks Rank of #2 (Buy), while Orbotech has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ATEYY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

ATEYY currently has a forward P/E ratio of 10, while ORBK has a forward P/E of 17.30. We also note that ATEYY has a PEG ratio of 0.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ORBK currently has a PEG ratio of 0.99.

Another notable valuation metric for ATEYY is its P/B ratio of 2.62. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ORBK has a P/B of 2.83.

These metrics, and several others, help ATEYY earn a Value grade of B, while ORBK has been given a Value grade of C.

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


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