Yahoo Finance ASX vs. NVMI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either ASE Technology Hldg (ASX) 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.
Right now, ASE Technology Hldg is sporting a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that ASX likely has seen a stronger improvement to its earnings outlook than NVMI has recently. But this is only part of the picture for value investors.
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.
ASX currently has a forward P/E ratio of 18.57, while NVMI has a forward P/E of 41.05. We also note that ASX has a PEG ratio of 0.65. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVMI currently has a PEG ratio of 2.86.
Another notable valuation metric for ASX is its P/B ratio of 2.54. 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, NVMI has a P/B of 8.35.
These metrics, and several others, help ASX earn a Value grade of A, while NVMI has been given a Value grade of F.
ASX stands above NVMI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ASX is the superior value option right now.
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ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
Nova Ltd. (NVMI) : Free Stock Analysis Report
