Canada markets open in 6 hours 4 minutes
  • S&P/TSX

    19,310.74
    +122.74 (+0.64%)
     
  • S&P 500

    4,167.59
    +2.93 (+0.07%)
     
  • DOW

    34,230.34
    +97.34 (+0.29%)
     
  • CAD/USD

    0.8162
    +0.0009 (+0.11%)
     
  • CRUDE OIL

    65.60
    -0.03 (-0.05%)
     
  • BTC-CAD

    69,535.41
    +2,310.82 (+3.44%)
     
  • CMC Crypto 200

    1,451.91
    +46.60 (+3.32%)
     
  • GOLD FUTURES

    1,793.60
    +9.30 (+0.52%)
     
  • RUSSELL 2000

    2,241.37
    -6.92 (-0.31%)
     
  • 10-Yr Bond

    1.5840
    0.0000 (0.00%)
     
  • NASDAQ futures

    13,548.00
    +57.00 (+0.42%)
     
  • VOLATILITY

    19.15
    -0.33 (-1.69%)
     
  • FTSE

    7,059.17
    +19.87 (+0.28%)
     
  • NIKKEI 225

    29,331.37
    +518.77 (+1.80%)
     
  • CAD/EUR

    0.6785
    -0.0001 (-0.01%)
     

MG or SITM: Which Is the Better Value Stock Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Mistras (MG) and SiTime (SITM). But which of these two stocks presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Mistras has a Zacks Rank of #2 (Buy), while SiTime 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 MG 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 also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

MG currently has a forward P/E ratio of 44.12, while SITM has a forward P/E of 105.26. We also note that MG has a PEG ratio of 1.36. 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. SITM currently has a PEG ratio of 7.02.

Another notable valuation metric for MG is its P/B ratio of 1.70. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SITM has a P/B of 15.03.

Based on these metrics and many more, MG holds a Value grade of B, while SITM has a Value grade of F.

MG has seen stronger estimate revision activity and sports more attractive valuation metrics than SITM, so it seems like value investors will conclude that MG is the superior option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Mistras Group Inc (MG) : Free Stock Analysis Report
 
SiTime Corporation (SITM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.