VPG vs. IIN: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Vishay Precision (VPG) and IntriCon Corporation (IIN). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Vishay Precision has a Zacks Rank of #2 (Buy), while IntriCon Corporation has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that VPG likely has seen a stronger improvement to its earnings outlook than IIN has recently. However, value investors will care about much more than just this.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

VPG currently has a forward P/E ratio of 24.34, while IIN has a forward P/E of 42.17. We also note that VPG has a PEG ratio of 3.04. 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. IIN currently has a PEG ratio of 3.51.

Another notable valuation metric for VPG is its P/B ratio of 1.84. 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, IIN has a P/B of 2.17.

These are just a few of the metrics contributing to VPG's Value grade of B and IIN's Value grade of C.

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


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Vishay Precision Group, Inc. (VPG) : Free Stock Analysis Report
 
IntriCon Corporation (IIN) : Free Stock Analysis Report
 
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