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ASX vs. PI: Which Stock Is the Better Value Option?

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Investors interested in Electronics - Semiconductors stocks are likely familiar with ASE Technology Hldg (ASX - Free Report) and Impinj (PI - 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 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, ASE Technology Hldg has a Zacks Rank of #2 (Buy), while Impinj has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASX likely has seen a stronger improvement to its earnings outlook than PI has recently. But this is just one piece of the puzzle 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.

ASX currently has a forward P/E ratio of 13.39, while PI has a forward P/E of 671.81. We also note that ASX has a PEG ratio of 4.42. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PI currently has a PEG ratio of 33.59.

Another notable valuation metric for ASX is its P/B ratio of 1.50. 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, PI has a P/B of 7.61.

Based on these metrics and many more, ASX holds a Value grade of A, while PI has a Value grade of F.

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


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ASE Technology Holding Co., Ltd. (ASX) - free report >>

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