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SNE vs. SONO: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Audio Video Production sector have probably already heard of Sony and Sonos (SONO - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sony is sporting a Zacks Rank of #1 (Strong Buy), while Sonos has a Zacks Rank of #3 (Hold). This means that SNE'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 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 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.
SNE currently has a forward P/E ratio of 12.11, while SONO has a forward P/E of 47.13. We also note that SNE has a PEG ratio of 1.05. 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. SONO currently has a PEG ratio of 1.29.
Another notable valuation metric for SNE is its P/B ratio of 2.44. 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, SONO has a P/B of 8.66.
These metrics, and several others, help SNE earn a Value grade of B, while SONO has been given a Value grade of C.
SNE has seen stronger estimate revision activity and sports more attractive valuation metrics than SONO, so it seems like value investors will conclude that SNE is the superior option right now.
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SNE vs. SONO: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Audio Video Production sector have probably already heard of Sony and Sonos (SONO - 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Sony is sporting a Zacks Rank of #1 (Strong Buy), while Sonos has a Zacks Rank of #3 (Hold). This means that SNE'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 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 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.
SNE currently has a forward P/E ratio of 12.11, while SONO has a forward P/E of 47.13. We also note that SNE has a PEG ratio of 1.05. 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. SONO currently has a PEG ratio of 1.29.
Another notable valuation metric for SNE is its P/B ratio of 2.44. 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, SONO has a P/B of 8.66.
These metrics, and several others, help SNE earn a Value grade of B, while SONO has been given a Value grade of C.
SNE has seen stronger estimate revision activity and sports more attractive valuation metrics than SONO, so it seems like value investors will conclude that SNE is the superior option right now.