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TTDKY vs. OLED: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either TDK Corp. (TTDKY - Free Report) or Universal Display Corp. (OLED - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, TDK Corp. has a Zacks Rank of #1 (Strong Buy), while Universal Display Corp. has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTDKY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

TTDKY currently has a forward P/E ratio of 14.88, while OLED has a forward P/E of 39.41. We also note that TTDKY has a PEG ratio of 0.98. 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. OLED currently has a PEG ratio of 1.26.

Another notable valuation metric for TTDKY is its P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OLED has a P/B of 6.84.

Based on these metrics and many more, TTDKY holds a Value grade of A, while OLED has a Value grade of D.

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


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