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MCHP or MXIM: Which Is the Better Value Stock Right Now?
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Investors interested in Semiconductor - Analog and Mixed stocks are likely familiar with Microchip Technology (MCHP - Free Report) and Maxim Integrated Products . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Microchip Technology and Maxim Integrated Products are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MCHP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
MCHP currently has a forward P/E ratio of 19.28, while MXIM has a forward P/E of 27.99. We also note that MCHP has a PEG ratio of 1.33. 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. MXIM currently has a PEG ratio of 2.80.
Another notable valuation metric for MCHP is its P/B ratio of 4.65. 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, MXIM has a P/B of 10.07.
These are just a few of the metrics contributing to MCHP's Value grade of B and MXIM's Value grade of C.
MCHP has seen stronger estimate revision activity and sports more attractive valuation metrics than MXIM, so it seems like value investors will conclude that MCHP is the superior option right now.
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MCHP or MXIM: Which Is the Better Value Stock Right Now?
Investors interested in Semiconductor - Analog and Mixed stocks are likely familiar with Microchip Technology (MCHP - Free Report) and Maxim Integrated Products . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Microchip Technology and Maxim Integrated Products are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MCHP is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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.
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.
MCHP currently has a forward P/E ratio of 19.28, while MXIM has a forward P/E of 27.99. We also note that MCHP has a PEG ratio of 1.33. 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. MXIM currently has a PEG ratio of 2.80.
Another notable valuation metric for MCHP is its P/B ratio of 4.65. 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, MXIM has a P/B of 10.07.
These are just a few of the metrics contributing to MCHP's Value grade of B and MXIM's Value grade of C.
MCHP has seen stronger estimate revision activity and sports more attractive valuation metrics than MXIM, so it seems like value investors will conclude that MCHP is the superior option right now.