Yahoo Finance TTDKY vs. OLED: Which Stock Is the Better Value Option?
Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both TDK Corp. (TTDKY) and Universal Display Corp. (OLED). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, TDK Corp. is sporting a Zacks Rank of #1 (Strong Buy), while Universal Display Corp. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that TTDKY likely has seen a stronger improvement to its earnings outlook than OLED has recently. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
TTDKY currently has a forward P/E ratio of 12, while OLED has a forward P/E of 27.20. We also note that TTDKY has a PEG ratio of 0.98. 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. OLED currently has a PEG ratio of 1.54.
Another notable valuation metric for TTDKY is its P/B ratio of 1.23. 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, OLED has a P/B of 4.20.
These metrics, and several others, help TTDKY earn a Value grade of A, while OLED has been given a Value grade of D.
TTDKY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that TTDKY is likely the superior value option right now.
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TDK Corp. (TTDKY) : Free Stock Analysis Report
Universal Display Corporation (OLED) : Free Stock Analysis Report
