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LPL vs. IMMR: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Computer - Peripheral Equipment sector have probably already heard of LG Display (LPL - Free Report) and Immersion (IMMR - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both LG Display and Immersion are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 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.

LPL currently has a forward P/E ratio of 6.87, while IMMR has a forward P/E of 14.15. We also note that LPL has a PEG ratio of 0.15. 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. IMMR currently has a PEG ratio of 0.94.

Another notable valuation metric for LPL is its P/B ratio of 0.67. 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, IMMR has a P/B of 4.23.

These metrics, and several others, help LPL earn a Value grade of A, while IMMR has been given a Value grade of F.

Both LPL and IMMR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that LPL is the superior value option right now.


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