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IFNNY or PI: Which Is the Better Value Stock Right Now?

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Investors with an interest in Electronics - Semiconductors stocks have likely encountered both Infineon Technologies AG (IFNNY - Free Report) and Impinj (PI - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Infineon Technologies AG has a Zacks Rank of #2 (Buy), while Impinj has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IFNNY is likely seeing its earnings outlook improve to a greater extent. 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.

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.

IFNNY currently has a forward P/E ratio of 14.70, while PI has a forward P/E of 87.90. We also note that IFNNY has a PEG ratio of 1.33. 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. PI currently has a PEG ratio of 3.52.

Another notable valuation metric for IFNNY is its P/B ratio of 2.90. 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, PI has a P/B of 1,486.50.

These are just a few of the metrics contributing to IFNNY's Value grade of A and PI's Value grade of F.

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


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