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NXPI or MPWR: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Semiconductor - Analog and Mixed sector might want to consider either NXP Semiconductors (NXPI - Free Report) or Monolithic Power (MPWR - 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.
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 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.
NXP Semiconductors has a Zacks Rank of #2 (Buy), while Monolithic Power has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXPI has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
NXPI currently has a forward P/E ratio of 15.58, while MPWR has a forward P/E of 45.47. We also note that NXPI has a PEG ratio of 0.71. 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. MPWR currently has a PEG ratio of 1.82.
Another notable valuation metric for NXPI is its P/B ratio of 6.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MPWR has a P/B of 14.45.
These are just a few of the metrics contributing to NXPI's Value grade of B and MPWR's Value grade of F.
NXPI sticks out from MPWR in both our Zacks Rank and Style Scores models, so value investors will likely feel that NXPI is the better option right now.
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NXPI or MPWR: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Semiconductor - Analog and Mixed sector might want to consider either NXP Semiconductors (NXPI - Free Report) or Monolithic Power (MPWR - 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.
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 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.
NXP Semiconductors has a Zacks Rank of #2 (Buy), while Monolithic Power has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NXPI has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
NXPI currently has a forward P/E ratio of 15.58, while MPWR has a forward P/E of 45.47. We also note that NXPI has a PEG ratio of 0.71. 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. MPWR currently has a PEG ratio of 1.82.
Another notable valuation metric for NXPI is its P/B ratio of 6.77. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MPWR has a P/B of 14.45.
These are just a few of the metrics contributing to NXPI's Value grade of B and MPWR's Value grade of F.
NXPI sticks out from MPWR in both our Zacks Rank and Style Scores models, so value investors will likely feel that NXPI is the better option right now.