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VPG vs. CAMP: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Electronics - Miscellaneous Components sector might want to consider either Vishay Precision (VPG - Free Report) or CalAmp . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Vishay Precision has a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VPG has an improving earnings outlook. But this is just one piece of the puzzle 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 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.

VPG currently has a forward P/E ratio of 15.75, while CAMP has a forward P/E of 229.33. We also note that VPG has a PEG ratio of 1.97. 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. CAMP currently has a PEG ratio of 19.11.

Another notable valuation metric for VPG is its P/B ratio of 1.63. 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, CAMP has a P/B of 3.08.

These metrics, and several others, help VPG earn a Value grade of B, while CAMP has been given a Value grade of D.

VPG sticks out from CAMP in both our Zacks Rank and Style Scores models, so value investors will likely feel that VPG is the better option right now.


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