Yahoo Finance ASX or LSCC: Which Is the Better Value Stock Right Now?
Investors interested in Electronics - Semiconductors stocks are likely familiar with ASE Technology Hldg (ASX) and Lattice Semiconductor (LSCC). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
ASE Technology Hldg has a Zacks Rank of #2 (Buy), while Lattice Semiconductor has a Zacks Rank of #3 (Hold) right now. This means that ASX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
ASX currently has a forward P/E ratio of 15.19, while LSCC has a forward P/E of 50.70. We also note that ASX has a PEG ratio of 0.53. 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. LSCC currently has a PEG ratio of 9.18.
Another notable valuation metric for ASX is its P/B ratio of 2.17. 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, LSCC has a P/B of 13.18.
Based on these metrics and many more, ASX holds a Value grade of A, while LSCC has a Value grade of F.
ASX has seen stronger estimate revision activity and sports more attractive valuation metrics than LSCC, so it seems like value investors will conclude that ASX is the superior option right now.
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ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
