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GLW vs. AIRG: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Communication - Components sector might want to consider either Corning (GLW - Free Report) or Airgain (AIRG - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Corning has a Zacks Rank of #2 (Buy), while Airgain has a Zacks Rank of #3 (Hold) right now. This means that GLW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GLW currently has a forward P/E ratio of 22.79, while AIRG has a forward P/E of 67.16. We also note that GLW has a PEG ratio of 1.33. 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. AIRG currently has a PEG ratio of 1.92.

Another notable valuation metric for GLW is its P/B ratio of 3.08. 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, AIRG has a P/B of 4.26.

Based on these metrics and many more, GLW holds a Value grade of B, while AIRG has a Value grade of D.

GLW has seen stronger estimate revision activity and sports more attractive valuation metrics than AIRG, so it seems like value investors will conclude that GLW is the superior option right now.


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