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HEAR vs. AIRG: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Communication - Components sector have probably already heard of Turtle Beach (HEAR - Free Report) and Airgain (AIRG - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Turtle Beach has a Zacks Rank of #2 (Buy), while Airgain has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that HEAR likely has seen a stronger improvement to its earnings outlook than AIRG has recently. 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.

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.

HEAR currently has a forward P/E ratio of 14.90, while AIRG has a forward P/E of 78.42. We also note that HEAR has a PEG ratio of 0.93. 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. AIRG currently has a PEG ratio of 2.24.

Another notable valuation metric for HEAR is its P/B ratio of 1.60. 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, AIRG has a P/B of 2.01.

These are just a few of the metrics contributing to HEAR's Value grade of A and AIRG's Value grade of D.

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


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Turtle Beach Corporation (HEAR) - free report >>

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