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LFUS or CAMP: Which Is the Better Value Stock Right Now?

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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with Littelfuse (LFUS - Free Report) and CalAmp . 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.

Right now, Littelfuse is sporting a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #3 (Hold). 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 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

LFUS currently has a forward P/E ratio of 15.59, while CAMP has a forward P/E of 67.90. We also note that LFUS has a PEG ratio of 1.30. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAMP currently has a PEG ratio of 5.66.

Another notable valuation metric for LFUS is its P/B ratio of 3.21. 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, CAMP has a P/B of 3.23.

Based on these metrics and many more, LFUS holds a Value grade of B, while CAMP has a Value grade of C.

LFUS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LFUS is likely the superior value option right now.


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