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IDCC or MSI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Wireless Equipment stocks have likely encountered both InterDigital (IDCC - Free Report) and Motorola (MSI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both InterDigital and Motorola are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
IDCC currently has a forward P/E ratio of 15.13, while MSI has a forward P/E of 35.84. We also note that IDCC has a PEG ratio of 0.87. 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. MSI currently has a PEG ratio of 3.69.
Another notable valuation metric for IDCC is its P/B ratio of 5.66. 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, MSI has a P/B of 97.32.
Based on these metrics and many more, IDCC holds a Value grade of B, while MSI has a Value grade of D.
Both IDCC and MSI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IDCC is the superior value option right now.
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IDCC or MSI: Which Is the Better Value Stock Right Now?
Investors with an interest in Wireless Equipment stocks have likely encountered both InterDigital (IDCC - Free Report) and Motorola (MSI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both InterDigital and Motorola are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.
IDCC currently has a forward P/E ratio of 15.13, while MSI has a forward P/E of 35.84. We also note that IDCC has a PEG ratio of 0.87. 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. MSI currently has a PEG ratio of 3.69.
Another notable valuation metric for IDCC is its P/B ratio of 5.66. 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, MSI has a P/B of 97.32.
Based on these metrics and many more, IDCC holds a Value grade of B, while MSI has a Value grade of D.
Both IDCC and MSI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that IDCC is the superior value option right now.