Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with TD SYNNEX (SNX) and Hoya Corp. (HOCPY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
TD SYNNEX and Hoya Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than HOCPY has recently. But this is just one factor that value investors are interested in.
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.
SNX currently has a forward P/E ratio of 12.58, while HOCPY has a forward P/E of 34.24. We also note that SNX has a PEG ratio of 1.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HOCPY currently has a PEG ratio of 3.12.
Another notable valuation metric for SNX is its P/B ratio of 1.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HOCPY has a P/B of 7.47.
These are just a few of the metrics contributing to SNX's Value grade of B and HOCPY's Value grade of D.
SNX has seen stronger estimate revision activity and sports more attractive valuation metrics than HOCPY, so it seems like value investors will conclude that SNX is the superior option right now.
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TD SYNNEX Corporation (SNX): Free Stock Analysis Report Hoya Corp. (HOCPY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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