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HAYW or HOCPY: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Hayward Holdings, Inc. (HAYW - Free Report) and Hoya Corp. (HOCPY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Hayward Holdings, Inc. has a Zacks Rank of #2 (Buy), while Hoya Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that HAYW is likely seeing its earnings outlook improve to a greater extent. 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 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.

HAYW currently has a forward P/E ratio of 24.18, while HOCPY has a forward P/E of 39.55. We also note that HAYW has a PEG ratio of 2.35. 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. HOCPY currently has a PEG ratio of 3.46.

Another notable valuation metric for HAYW is its P/B ratio of 2.35. 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, HOCPY has a P/B of 7.70.

Based on these metrics and many more, HAYW holds a Value grade of B, while HOCPY has a Value grade of F.

HAYW stands above HOCPY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HAYW is the superior value option right now.


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