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LFUS vs. CAMP: Which Stock Is the Better Value Option?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Littelfuse (LFUS - Free Report) and CalAmp (CAMP - 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.

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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Littelfuse has a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LFUS has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

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.

LFUS currently has a forward P/E ratio of 17.75, while CAMP has a forward P/E of 221.10. We also note that LFUS has a PEG ratio of 1.48. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAMP currently has a PEG ratio of 18.43.

Another notable valuation metric for LFUS is its P/B ratio of 3.25. 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 3.30.

These are just a few of the metrics contributing to LFUS's Value grade of B and CAMP's Value grade of C.

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


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CAMP4 Therapeutics Corporation (CAMP) - free report >>

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