APELY vs. MRCY: Which Stock Is the Better Value Option?

Investors interested in stocks from the Computer - Peripheral Equipment sector have probably already heard of Alps Electric (APELY) and Mercury Systems (MRCY). 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both Alps Electric and Mercury Systems are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

APELY currently has a forward P/E ratio of 7.91, while MRCY has a forward P/E of 23.72. We also note that APELY has a PEG ratio of 0.69. 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. MRCY currently has a PEG ratio of 13.95.

Another notable valuation metric for APELY is its P/B ratio of 0.56. 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, MRCY has a P/B of 1.87.

These are just a few of the metrics contributing to APELY's Value grade of B and MRCY's Value grade of D.

Both APELY and MRCY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APELY is the superior value option right now.

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Alps Electric (APELY) : Free Stock Analysis Report
 
Mercury Systems Inc (MRCY) : Free Stock Analysis Report
 
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