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INTC vs. TXN: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Semiconductor - General sector have probably already heard of Intel (INTC - Free Report) and Texas Instruments (TXN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Intel and Texas Instruments are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
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.
INTC currently has a forward P/E ratio of 12.71, while TXN has a forward P/E of 25.93. We also note that INTC has a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TXN currently has a PEG ratio of 2.78.
Another notable valuation metric for INTC is its P/B ratio of 3.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TXN has a P/B of 17.39.
These are just a few of the metrics contributing to INTC's Value grade of A and TXN's Value grade of D.
Both INTC and TXN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INTC is the superior value option right now.
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INTC vs. TXN: Which Stock Is the Better Value Option?
Investors interested in stocks from the Semiconductor - General sector have probably already heard of Intel (INTC - Free Report) and Texas Instruments (TXN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 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.
Intel and Texas Instruments are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.
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.
INTC currently has a forward P/E ratio of 12.71, while TXN has a forward P/E of 25.93. We also note that INTC has a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TXN currently has a PEG ratio of 2.78.
Another notable valuation metric for INTC is its P/B ratio of 3.15. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TXN has a P/B of 17.39.
These are just a few of the metrics contributing to INTC's Value grade of A and TXN's Value grade of D.
Both INTC and TXN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that INTC is the superior value option right now.