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SYNA or PXLW: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Synaptics (SYNA - Free Report) or Pixelworks (PXLW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Synaptics has a Zacks Rank of #1 (Strong Buy), while Pixelworks has a Zacks Rank of #2 (Buy). This means that SYNA'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 tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

SYNA currently has a forward P/E ratio of 8.77, while PXLW has a forward P/E of 161.57. We also note that SYNA has a PEG ratio of 1.75. 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. PXLW currently has a PEG ratio of 8.08.

Another notable valuation metric for SYNA is its P/B ratio of 2.01. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, PXLW has a P/B of 3.03.

Based on these metrics and many more, SYNA holds a Value grade of A, while PXLW has a Value grade of D.

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


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