PCRFY or DLB: Which Is the Better Value Stock Right Now?

·2 min read

Investors looking for stocks in the Audio Video Production sector might want to consider either Panasonic Corp. (PCRFY) or Dolby Laboratories (DLB). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 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.

Panasonic Corp. has a Zacks Rank of #1 (Strong Buy), while Dolby Laboratories has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PCRFY has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

PCRFY currently has a forward P/E ratio of 12.77, while DLB has a forward P/E of 22.86. We also note that PCRFY has a PEG ratio of 0.50. 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. DLB currently has a PEG ratio of 1.76.

Another notable valuation metric for PCRFY is its P/B ratio of 1.18. 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, DLB has a P/B of 3.46.

These are just a few of the metrics contributing to PCRFY's Value grade of A and DLB's Value grade of C.

PCRFY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PCRFY is likely the superior value option right now.


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Panasonic Corp. (PCRFY) : Free Stock Analysis Report
 
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