Yahoo Finance SNX or GRMN: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Products sector might want to consider either TD SYNNEX (SNX) or Garmin (GRMN). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
TD SYNNEX and Garmin 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 SNX 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.
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.
SNX currently has a forward P/E ratio of 9.87, while GRMN has a forward P/E of 26.34. We also note that SNX has a PEG ratio of 1.05. 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. GRMN currently has a PEG ratio of 4.70.
Another notable valuation metric for SNX is its P/B ratio of 1.27. 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, GRMN has a P/B of 3.91.
These metrics, and several others, help SNX earn a Value grade of A, while GRMN has been given a Value grade of D.
SNX stands above GRMN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
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TD SYNNEX Corporation (SNX) : Free Stock Analysis Report
Garmin Ltd. (GRMN) : Free Stock Analysis Report
