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DKILY vs. TRMB: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Electronics - Miscellaneous Products sector have probably already heard of Daikin Industries (DKILY - Free Report) and Trimble Navigation (TRMB - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Daikin Industries has a Zacks Rank of #2 (Buy), while Trimble Navigation has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DKILY has an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

DKILY currently has a forward P/E ratio of 19.46, while TRMB has a forward P/E of 20.24. We also note that DKILY has a PEG ratio of 1.88. 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. TRMB currently has a PEG ratio of 2.02.

Another notable valuation metric for DKILY is its P/B ratio of 1.91. 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, TRMB has a P/B of 2.39.

Based on these metrics and many more, DKILY holds a Value grade of A, while TRMB has a Value grade of D.

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


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