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APELY or MRCY: Which Is the Better Value Stock Right Now?
August 23, 2024

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Investors interested in stocks from the Computer - Peripheral Equipment sector have probably already heard of Alps Electric (APELY - Free Report) and Mercury Systems (MRCY - Free Report) . 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Alps Electric is sporting a Zacks Rank of #1 (Strong Buy), while Mercury Systems has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that APELY 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.

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.

APELY currently has a forward P/E ratio of 19.32, while MRCY has a forward P/E of 922.50. We also note that APELY has a PEG ratio of 0.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MRCY currently has a PEG ratio of 69.94.

Another notable valuation metric for APELY is its P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, MRCY has a P/B of 1.49.

These are just a few of the metrics contributing to APELY's Value grade of A and MRCY's Value grade of D.

APELY 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 APELY is likely the superior value option right now.




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