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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Nidec Corp. (NJDCY) and BWX Technologies (BWXT). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Nidec Corp. and BWX Technologies are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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.
NJDCY currently has a forward P/E ratio of 15.65, while BWXT has a forward P/E of 40.96. We also note that NJDCY has a PEG ratio of 0.47. 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. BWXT currently has a PEG ratio of 4.44.
Another notable valuation metric for NJDCY is its P/B ratio of 3.97. 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, BWXT has a P/B of 11.43.
These are just a few of the metrics contributing to NJDCY's Value grade of B and BWXT's Value grade of D.
Both NJDCY and BWXT are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NJDCY is the superior value option right now.
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Nidec Corp. (NJDCY) : Free Stock Analysis Report
BWX Technologies, Inc. (BWXT) : Free Stock Analysis Report