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KN vs. VCRA: Which Stock Is the Better Value Option?
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Investors interested in Communication - Components stocks are likely familiar with Knowles (KN - Free Report) and Vocera Communications . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Knowles and Vocera Communications are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
KN currently has a forward P/E ratio of 13.02, while VCRA has a forward P/E of 92.39. We also note that KN has a PEG ratio of 1.30. 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. VCRA currently has a PEG ratio of 5.13.
Another notable valuation metric for KN is its P/B ratio of 1.38. 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, VCRA has a P/B of 18.04.
Based on these metrics and many more, KN holds a Value grade of B, while VCRA has a Value grade of F.
Both KN and VCRA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KN is the superior value option right now.
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KN vs. VCRA: Which Stock Is the Better Value Option?
Investors interested in Communication - Components stocks are likely familiar with Knowles (KN - Free Report) and Vocera Communications . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Knowles and Vocera Communications are holding a Zacks Rank of # 1 (Strong Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.
KN currently has a forward P/E ratio of 13.02, while VCRA has a forward P/E of 92.39. We also note that KN has a PEG ratio of 1.30. 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. VCRA currently has a PEG ratio of 5.13.
Another notable valuation metric for KN is its P/B ratio of 1.38. 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, VCRA has a P/B of 18.04.
Based on these metrics and many more, KN holds a Value grade of B, while VCRA has a Value grade of F.
Both KN and VCRA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that KN is the superior value option right now.