Yahoo Finance SRI or NJDCY: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Stoneridge (SRI) or Nidec Corp. (NJDCY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive 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.
Right now, Stoneridge is sporting a Zacks Rank of #1 (Strong Buy), while Nidec Corp. has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SRI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
SRI currently has a forward P/E ratio of 20.84, while NJDCY has a forward P/E of 37.42. We also note that SRI has a PEG ratio of 2.32. 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. NJDCY currently has a PEG ratio of 3.51.
Another notable valuation metric for SRI is its P/B ratio of 3.27. 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, NJDCY has a P/B of 4.70.
These metrics, and several others, help SRI earn a Value grade of B, while NJDCY has been given a Value grade of F.
SRI sticks out from NJDCY in both our Zacks Rank and Style Scores models, so value investors will likely feel that SRI is the better option right now.
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Stoneridge, Inc. (SRI) : Free Stock Analysis Report
Nidec Corp. (NJDCY) : Free Stock Analysis Report
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