APELY or VPG: Which Is the Better Value Stock Right Now?

Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Alps Electric (APELY) and Vishay Precision (VPG). But which of these two stocks presents investors with the better value opportunity right now? 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 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.

Alps Electric has a Zacks Rank of #1 (Strong Buy), while Vishay Precision has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that APELY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.

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 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.

APELY currently has a forward P/E ratio of 24.17, while VPG has a forward P/E of 48.46. We also note that APELY has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VPG currently has a PEG ratio of 2.42.

Another notable valuation metric for APELY is its P/B ratio of 0.91. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, VPG has a P/B of 1.99.

Based on these metrics and many more, APELY holds a Value grade of A, while VPG has a Value grade of D.

APELY stands above VPG thanks to its solid earnings outlook, and based on these valuation figures, we also feel that APELY is the superior value option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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