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SYNA vs. AVGO: Which Stock Is the Better Value Option?
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Investors interested in Electronics - Semiconductors stocks are likely familiar with Synaptics (SYNA - Free Report) and Broadcom Inc. (AVGO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Synaptics is sporting a Zacks Rank of #2 (Buy), while Broadcom Inc. 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 SYNA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
SYNA currently has a forward P/E ratio of 11.38, while AVGO has a forward P/E of 15.88. We also note that SYNA has a PEG ratio of 1.14. 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. AVGO currently has a PEG ratio of 1.26.
Another notable valuation metric for SYNA is its P/B ratio of 3.20. 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, AVGO has a P/B of 6.90.
These are just a few of the metrics contributing to SYNA's Value grade of B and AVGO's Value grade of C.
SYNA has seen stronger estimate revision activity and sports more attractive valuation metrics than AVGO, so it seems like value investors will conclude that SYNA is the superior option right now.
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SYNA vs. AVGO: Which Stock Is the Better Value Option?
Investors interested in Electronics - Semiconductors stocks are likely familiar with Synaptics (SYNA - Free Report) and Broadcom Inc. (AVGO - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Synaptics is sporting a Zacks Rank of #2 (Buy), while Broadcom Inc. 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 SYNA has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
SYNA currently has a forward P/E ratio of 11.38, while AVGO has a forward P/E of 15.88. We also note that SYNA has a PEG ratio of 1.14. 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. AVGO currently has a PEG ratio of 1.26.
Another notable valuation metric for SYNA is its P/B ratio of 3.20. 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, AVGO has a P/B of 6.90.
These are just a few of the metrics contributing to SYNA's Value grade of B and AVGO's Value grade of C.
SYNA has seen stronger estimate revision activity and sports more attractive valuation metrics than AVGO, so it seems like value investors will conclude that SYNA is the superior option right now.