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PCMI vs. UNICY: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Consumer Products - Discretionary sector have probably already heard of PCM and UNICHARM CORP (UNICY - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

PCM and UNICHARM CORP are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that PCMI's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

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.

PCMI currently has a forward P/E ratio of 9.59, while UNICY has a forward P/E of 31.47. We also note that PCMI has a PEG ratio of 0.48. 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. UNICY currently has a PEG ratio of 3.50.

Another notable valuation metric for PCMI is its P/B ratio of 1.93. 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, UNICY has a P/B of 3.99.

Based on these metrics and many more, PCMI holds a Value grade of A, while UNICY has a Value grade of C.

PCMI stands above UNICY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that PCMI is the superior value option right now.


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