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ASX vs. CRUS: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Electronics - Semiconductors sector have probably already heard of ASE Technology Hldg (ASX - Free Report) and Cirrus Logic (CRUS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both ASE Technology Hldg and Cirrus Logic are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
ASX currently has a forward P/E ratio of 7.98, while CRUS has a forward P/E of 13.81. We also note that ASX has a PEG ratio of 0.30. 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. CRUS currently has a PEG ratio of 1.38.
Another notable valuation metric for ASX is its P/B ratio of 1.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CRUS has a P/B of 3.19.
Based on these metrics and many more, ASX holds a Value grade of A, while CRUS has a Value grade of C.
Both ASX and CRUS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASX is the superior value option right now.
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ASX vs. CRUS: Which Stock Is the Better Value Option?
Investors interested in stocks from the Electronics - Semiconductors sector have probably already heard of ASE Technology Hldg (ASX - Free Report) and Cirrus Logic (CRUS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both ASE Technology Hldg and Cirrus Logic are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
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.
ASX currently has a forward P/E ratio of 7.98, while CRUS has a forward P/E of 13.81. We also note that ASX has a PEG ratio of 0.30. 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. CRUS currently has a PEG ratio of 1.38.
Another notable valuation metric for ASX is its P/B ratio of 1.64. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CRUS has a P/B of 3.19.
Based on these metrics and many more, ASX holds a Value grade of A, while CRUS has a Value grade of C.
Both ASX and CRUS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASX is the superior value option right now.