IFNNY vs. NVMI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Infineon Technologies AG (IFNNY) or Nova Ltd. (NVMI). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 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.
Currently, Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that IFNNY likely has seen a stronger improvement to its earnings outlook than NVMI has recently. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
IFNNY currently has a forward P/E ratio of 16.20, while NVMI has a forward P/E of 25.06. We also note that IFNNY has a PEG ratio of 1.47. 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. NVMI currently has a PEG ratio of 3.95.
Another notable valuation metric for IFNNY is its P/B ratio of 3.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NVMI has a P/B of 4.91.
These are just a few of the metrics contributing to IFNNY's Value grade of A and NVMI's Value grade of D.
IFNNY 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 IFNNY is likely the superior value option right now.
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Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
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