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IFNNY vs. NVMI: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Infineon Technologies AG (IFNNY - Free Report) or Nova Ltd. (NVMI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Infineon Technologies AG and Nova Ltd. are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

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.

IFNNY currently has a forward P/E ratio of 13.57, while NVMI has a forward P/E of 26.91. We also note that IFNNY has a PEG ratio of 0.83. 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. NVMI currently has a PEG ratio of 7.43.

Another notable valuation metric for IFNNY is its P/B ratio of 3.18. 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, NVMI has a P/B of 5.14.

Based on these metrics and many more, IFNNY holds a Value grade of B, while NVMI has a Value grade of D.

Both IFNNY and NVMI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IFNNY is the superior value option right now.


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