PCRFY vs. DLB: Which Stock Should Value Investors Buy Now?

Investors interested in stocks from the Audio Video Production sector have probably already heard of Panasonic Corp. (PCRFY) and Dolby Laboratories (DLB). But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Panasonic Corp. has a Zacks Rank of #2 (Buy), while Dolby Laboratories has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PCRFY is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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.

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 13.15, while DLB has a forward P/E of 24. We also note that PCRFY has a PEG ratio of 0.52. 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. DLB currently has a PEG ratio of 1.85.

Another notable valuation metric for PCRFY is its P/B ratio of 1.18. 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, DLB has a P/B of 3.40.

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
 
Dolby Laboratories (DLB) : Free Stock Analysis Report
 
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