We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MKSI or ENTG: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Electronics - Manufacturing Machinery stocks are likely familiar with MKS Instruments (MKSI - Free Report) and Entegris (ENTG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, MKS Instruments has a Zacks Rank of #2 (Buy), while Entegris has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MKSI likely has seen a stronger improvement to its earnings outlook than ENTG has recently. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MKSI currently has a forward P/E ratio of 19.08, while ENTG has a forward P/E of 35.10. We also note that MKSI has a PEG ratio of 0.75. 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. ENTG currently has a PEG ratio of 1.48.
Another notable valuation metric for MKSI is its P/B ratio of 3.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ENTG has a P/B of 4.75.
These metrics, and several others, help MKSI earn a Value grade of A, while ENTG has been given a Value grade of C.
MKSI has seen stronger estimate revision activity and sports more attractive valuation metrics than ENTG, so it seems like value investors will conclude that MKSI is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MKSI or ENTG: Which Is the Better Value Stock Right Now?
Investors interested in Electronics - Manufacturing Machinery stocks are likely familiar with MKS Instruments (MKSI - Free Report) and Entegris (ENTG - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Currently, MKS Instruments has a Zacks Rank of #2 (Buy), while Entegris has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MKSI likely has seen a stronger improvement to its earnings outlook than ENTG has recently. But this is just one piece of the puzzle 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
MKSI currently has a forward P/E ratio of 19.08, while ENTG has a forward P/E of 35.10. We also note that MKSI has a PEG ratio of 0.75. 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. ENTG currently has a PEG ratio of 1.48.
Another notable valuation metric for MKSI is its P/B ratio of 3.22. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, ENTG has a P/B of 4.75.
These metrics, and several others, help MKSI earn a Value grade of A, while ENTG has been given a Value grade of C.
MKSI has seen stronger estimate revision activity and sports more attractive valuation metrics than ENTG, so it seems like value investors will conclude that MKSI is the superior option right now.