IFNNY or CRUS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either Infineon Technologies AG (IFNNY) or Cirrus Logic (CRUS). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Infineon Technologies AG and Cirrus Logic are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IFNNY has an improving earnings outlook. 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.
IFNNY currently has a forward P/E ratio of 14.80, while CRUS has a forward P/E of 16.24. We also note that IFNNY 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. CRUS currently has a PEG ratio of 3.67.
Another notable valuation metric for IFNNY is its P/B ratio of 3.11. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, CRUS has a P/B of 3.30.
These metrics, and several others, help IFNNY earn a Value grade of B, while CRUS has been given a Value grade of D.
IFNNY sticks out from CRUS in both our Zacks Rank and Style Scores models, so value investors will likely feel that IFNNY is the better option right now.
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Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
