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NOK vs. JNPR: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Wireless Equipment sector have probably already heard of Nokia (NOK - Free Report) and Juniper Networks (JNPR - 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.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Nokia has a Zacks Rank of #2 (Buy), while Juniper Networks 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 NOK has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

NOK currently has a forward P/E ratio of 11.92, while JNPR has a forward P/E of 23.10. We also note that NOK has a PEG ratio of 5.30. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. JNPR currently has a PEG ratio of 6.49.

Another notable valuation metric for NOK is its P/B ratio of 1.05. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, JNPR has a P/B of 2.83.

These are just a few of the metrics contributing to NOK's Value grade of A and JNPR's Value grade of C.

NOK is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NOK is likely the superior value option right now.


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