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DINRF or STM: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Semiconductor - General sector have probably already heard of Screen Holdings Co., Ltd (DINRF - Free Report) and STMicroelectronics (STM - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Screen Holdings Co., Ltd and STMicroelectronics are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that DINRF likely has seen a stronger improvement to its earnings outlook than STM has recently. But this is only part of the picture for value investors.

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.

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.

DINRF currently has a forward P/E ratio of 10.69, while STM has a forward P/E of 19.33. We also note that DINRF has a PEG ratio of 1.07. 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. STM currently has a PEG ratio of 3.87.

Another notable valuation metric for DINRF is its P/B ratio of 1.11. 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, STM has a P/B of 3.70.

These metrics, and several others, help DINRF earn a Value grade of A, while STM has been given a Value grade of C.

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


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STMicroelectronics N.V. (STM) - free report >>

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