Advertisement
Singapore markets closed

  • Straits Times Index

    3,280.10
    -7.65 (-0.23%)
     

  • Nikkei

    37,934.76
    +306.28 (+0.81%)
     

  • Hang Seng

    17,651.15
    +366.61 (+2.12%)
     

  • FTSE 100

    8,139.83
    +60.97 (+0.75%)
     

  • Bitcoin USD

    64,046.52
    -608.29 (-0.94%)
     

  • CMC Crypto 200

    1,332.51
    -64.03 (-4.58%)
     

  • S&P 500

    5,109.27
    +60.85 (+1.21%)
     

  • Dow

    38,321.83
    +236.03 (+0.62%)
     

  • Nasdaq

    15,942.16
    +330.40 (+2.12%)
     

  • Gold

    2,350.00
    +7.50 (+0.32%)
     

  • Crude Oil

    83.95
    +0.38 (+0.45%)
     

  • 10-Yr Bond

    4.6730
    -0.0330 (-0.70%)
     

  • FTSE Bursa Malaysia

    1,575.16
    +5.91 (+0.38%)
     

  • Jakarta Composite Index

    7,036.08
    -119.22 (-1.67%)
     

  • PSE Index

    6,628.75
    +53.87 (+0.82%)
     

JNPR vs. IDCC: Which Stock Should Value Investors Buy Now?

Zacks Equity Research
·2-min read

Investors with an interest in Wireless Equipment stocks have likely encountered both Juniper Networks (JNPR) and InterDigital (IDCC). But which of these two companies is the best option for those looking for undervalued stocks? 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.

Currently, both Juniper Networks and InterDigital are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

ADVERTISEMENT

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.

JNPR currently has a forward P/E ratio of 15.39, while IDCC has a forward P/E of 38.84. We also note that JNPR has a PEG ratio of 2.10. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. IDCC currently has a PEG ratio of 2.59.

Another notable valuation metric for JNPR is its P/B ratio of 1.79. 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, IDCC has a P/B of 2.23.

These are just a few of the metrics contributing to JNPR's Value grade of B and IDCC's Value grade of C.

Both JNPR and IDCC are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JNPR is the superior value option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
 
InterDigital, Inc. (IDCC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research