LPL vs. IMMR: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Computer - Peripheral Equipment stocks have likely encountered both LG Display (LPL) and Immersion (IMMR). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

LG Display has a Zacks Rank of #1 (Strong Buy), while Immersion has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that LPL likely has seen a stronger improvement to its earnings outlook than IMMR has recently. But this is just one factor that value investors are interested in.

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.

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.

LPL currently has a forward P/E ratio of 5.48, while IMMR has a forward P/E of 11.13. We also note that LPL has a PEG ratio of 0.17. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IMMR currently has a PEG ratio of 0.74.

Another notable valuation metric for LPL is its P/B ratio of 0.78. 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, IMMR has a P/B of 3.33.

Based on these metrics and many more, LPL holds a Value grade of A, while IMMR has a Value grade of C.

LPL sticks out from IMMR in both our Zacks Rank and Style Scores models, so value investors will likely feel that LPL is the better option right now.


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LG Display Co., Ltd. (LPL) : Free Stock Analysis Report
 
Immersion Corporation (IMMR) : Free Stock Analysis Report
 
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