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TTDKY vs. IIN: Which Stock Should Value Investors Buy Now?

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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 IntriCon Corporation . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, TDK Corp. has a Zacks Rank of #2 (Buy), while IntriCon Corporation has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that TTDKY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 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.

TTDKY currently has a forward P/E ratio of 12.15, while IIN has a forward P/E of 105.78. We also note that TTDKY has a PEG ratio of 0.79. 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. IIN currently has a PEG ratio of 8.81.

Another notable valuation metric for TTDKY is its P/B ratio of 1.47. 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, IIN has a P/B of 2.32.

These are just a few of the metrics contributing to TTDKY's Value grade of A and IIN's Value grade of D.

TTDKY sticks out from IIN 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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