UK Markets closed
  • FTSE 100

    6,991.09
    -6.18 (-0.09%)
     
  • FTSE 250

    17,353.28
    -279.36 (-1.58%)
     
  • AIM

    810.22
    -5.98 (-0.73%)
     
  • GBP/EUR

    1.1367
    -0.0031 (-0.27%)
     
  • GBP/USD

    1.1099
    -0.0069 (-0.62%)
     
  • BTC-GBP

    17,519.57
    -717.92 (-3.94%)
     
  • CMC Crypto 200

    443.61
    -11.42 (-2.51%)
     
  • S&P 500

    3,649.14
    -95.38 (-2.55%)
     
  • DOW

    29,358.97
    -567.97 (-1.90%)
     
  • CRUDE OIL

    92.49
    +4.04 (+4.57%)
     
  • GOLD FUTURES

    1,708.70
    -12.10 (-0.70%)
     
  • NIKKEI 225

    27,116.11
    -195.19 (-0.71%)
     
  • HANG SENG

    17,740.05
    -272.10 (-1.51%)
     
  • DAX

    12,273.00
    -197.78 (-1.59%)
     
  • CAC 40

    5,866.94
    -69.48 (-1.17%)
     

IFNNY vs. CRUS: Which Stock Should Value Investors Buy Now?

·2-min read

Investors interested in Electronics - Semiconductors stocks are likely familiar with Infineon Technologies AG (IFNNY) and Cirrus Logic (CRUS). 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Cirrus Logic has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IFNNY has an improving earnings outlook. 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.

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.

IFNNY currently has a forward P/E ratio of 13.48, while CRUS has a forward P/E of 15.03. We also note that IFNNY has a PEG ratio of 0.57. 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. CRUS currently has a PEG ratio of 5.52.

Another notable valuation metric for IFNNY is its P/B ratio of 2.51. 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, CRUS has a P/B of 2.91.

These metrics, and several others, help IFNNY earn a Value grade of B, while CRUS has been given a Value grade of C.

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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
 
Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.