TTDKY or OMRNY: Which Is the Better Value Stock Right Now?
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Investors interested in Electronics - Miscellaneous Components stocks are likely familiar with TDK Corp. (TTDKY) and Omron Corp. (OMRNY). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
TDK Corp. and Omron Corp. are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that TTDKY has an improving earnings outlook. However, value investors will care about much more than just this.
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 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.
TTDKY currently has a forward P/E ratio of 21.48, while OMRNY has a forward P/E of 38.84. We also note that TTDKY has a PEG ratio of 1.21. 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. OMRNY currently has a PEG ratio of 18.32.
Another notable valuation metric for TTDKY is its P/B ratio of 1.62. 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, OMRNY has a P/B of 1.84.
These metrics, and several others, help TTDKY earn a Value grade of B, while OMRNY has been given a Value grade of C.
TTDKY sticks out from OMRNY in both our Zacks Rank and Style Scores models, so value investors will likely feel that TTDKY is the better option right now.
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TDK Corp. (TTDKY) : Free Stock Analysis Report
Omron Corp. (OMRNY) : Free Stock Analysis Report