Yahoo Finance SNX vs. TRMB: Which Stock Is the Better Value Option?
Investors with an interest in Electronics - Miscellaneous Products stocks have likely encountered both TD SYNNEX (SNX) and Trimble Navigation (TRMB). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, TD SYNNEX has a Zacks Rank of #2 (Buy), while Trimble Navigation has a Zacks Rank of #3 (Hold). This means that SNX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
SNX currently has a forward P/E ratio of 11, while TRMB has a forward P/E of 20.56. We also note that SNX has a PEG ratio of 1.21. 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. TRMB currently has a PEG ratio of 2.06.
Another notable valuation metric for SNX is its P/B ratio of 1.42. 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, TRMB has a P/B of 3.13.
These metrics, and several others, help SNX earn a Value grade of A, while TRMB has been given a Value grade of D.
SNX stands above TRMB thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
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TD SYNNEX Corporation (SNX) : Free Stock Analysis Report
Trimble Inc. (TRMB) : Free Stock Analysis Report
