TTDKY or TEL: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either TDK Corp. (TTDKY) or TE Connectivity (TEL). 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.
TDK Corp. and TE Connectivity are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that TTDKY likely has seen a stronger improvement to its earnings outlook than TEL has recently. However, value investors will care about much more than just this.
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.
TTDKY currently has a forward P/E ratio of 11.85, while TEL has a forward P/E of 20.16. We also note that TTDKY has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TEL currently has a PEG ratio of 2.93.
Another notable valuation metric for TTDKY is its P/B ratio of 1.28. 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, TEL has a P/B of 3.73.
These metrics, and several others, help TTDKY earn a Value grade of A, while TEL has been given a Value grade of C.
TTDKY has seen stronger estimate revision activity and sports more attractive valuation metrics than TEL, so it seems like value investors will conclude that TTDKY is the superior option right now.
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TDK Corp. (TTDKY) : Free Stock Analysis Report
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