KYOCY or OLED: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of Kyocera (KYOCY) and Universal Display Corp. (OLED). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Kyocera and Universal Display Corp. 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 KYOCY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
KYOCY currently has a forward P/E ratio of 18.53, while OLED has a forward P/E of 34.82. We also note that KYOCY has a PEG ratio of 1.57. 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. OLED currently has a PEG ratio of 1.79.
Another notable valuation metric for KYOCY is its P/B ratio of 0.64. 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 5.
These are just a few of the metrics contributing to KYOCY's Value grade of A and OLED's Value grade of D.
KYOCY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that KYOCY is likely the superior value option right now.
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Kyocera Corporation (KYOCY) : Free Stock Analysis Report
Universal Display Corporation (OLED) : Free Stock Analysis Report