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UEIC vs. KLAC: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Universal Electronics (UEIC - Free Report) or KLA (KLAC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Universal Electronics has a Zacks Rank of #2 (Buy), while KLA has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that UEIC likely has seen a stronger improvement to its earnings outlook than KLAC has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UEIC currently has a forward P/E ratio of 9.63, while KLAC has a forward P/E of 15.26. We also note that UEIC has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KLAC currently has a PEG ratio of 1.34.
Another notable valuation metric for UEIC is its P/B ratio of 1.97. 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, KLAC has a P/B of 8.67.
Based on these metrics and many more, UEIC holds a Value grade of B, while KLAC has a Value grade of D.
UEIC has seen stronger estimate revision activity and sports more attractive valuation metrics than KLAC, so it seems like value investors will conclude that UEIC is the superior option right now.
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UEIC vs. KLAC: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either Universal Electronics (UEIC - Free Report) or KLA (KLAC - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Universal Electronics has a Zacks Rank of #2 (Buy), while KLA has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that UEIC likely has seen a stronger improvement to its earnings outlook than KLAC has recently. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
UEIC currently has a forward P/E ratio of 9.63, while KLAC has a forward P/E of 15.26. We also note that UEIC has a PEG ratio of 0.64. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KLAC currently has a PEG ratio of 1.34.
Another notable valuation metric for UEIC is its P/B ratio of 1.97. 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, KLAC has a P/B of 8.67.
Based on these metrics and many more, UEIC holds a Value grade of B, while KLAC has a Value grade of D.
UEIC has seen stronger estimate revision activity and sports more attractive valuation metrics than KLAC, so it seems like value investors will conclude that UEIC is the superior option right now.