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DINRF or STM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Semiconductor - General stocks have likely encountered both Screen Holdings Co., Ltd (DINRF - Free Report) and STMicroelectronics (STM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 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.

Right now, Screen Holdings Co., Ltd is sporting a Zacks Rank of #1 (Strong Buy), while STMicroelectronics has a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that DINRF likely has seen a stronger improvement to its earnings outlook than STM has recently. But this is only part of the picture for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

DINRF currently has a forward P/E ratio of 11.30, while STM has a forward P/E of 25.17. We also note that DINRF has a PEG ratio of 1.13. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. STM currently has a PEG ratio of 5.03.

Another notable valuation metric for DINRF is its P/B ratio of 1.11. 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, STM has a P/B of 3.62.

Based on these metrics and many more, DINRF holds a Value grade of A, while STM has a Value grade of C.

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


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STMicroelectronics N.V. (STM) - free report >>

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