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VPG or BWXT: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Vishay Precision (VPG - Free Report) or BWX Technologies (BWXT - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Vishay Precision has a Zacks Rank of #2 (Buy), while BWX Technologies has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that VPG likely has seen a stronger improvement to its earnings outlook than BWXT has recently. But this is just one factor that value investors are interested in.

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 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 12.46, while BWXT has a forward P/E of 15.10. We also note that VPG has a PEG ratio of 0.62. 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. BWXT currently has a PEG ratio of 1.42.

Another notable valuation metric for VPG is its P/B ratio of 1.83. 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, BWXT has a P/B of 9.68.

Based on these metrics and many more, VPG holds a Value grade of B, while BWXT has a Value grade of D.

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


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

BWX Technologies, Inc. (BWXT) - free report >>

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