雅虎香港財經 NOK vs. JNPR: Which Stock Is the Better Value Option?
Investors with an interest in Wireless Equipment stocks have likely encountered both Nokia (NOK) and Juniper Networks (JNPR). 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Nokia is sporting a Zacks Rank of #2 (Buy), while Juniper Networks has a Zacks Rank of #4 (Sell). This means that NOK's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NOK currently has a forward P/E ratio of 9.28, while JNPR has a forward P/E of 16.69. We also note that NOK has a PEG ratio of 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JNPR currently has a PEG ratio of 4.69.
Another notable valuation metric for NOK is its P/B ratio of 0.89. 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, JNPR has a P/B of 2.63.
Based on these metrics and many more, NOK holds a Value grade of A, while JNPR has a Value grade of D.
NOK sticks out from JNPR in both our Zacks Rank and Style Scores models, so value investors will likely feel that NOK is the better option right now.
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Nokia Corporation (NOK) : Free Stock Analysis Report
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
