TTDKY or NVT: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Electronics - Miscellaneous Components sector have probably already heard of TDK Corp. TTDKY and nVent Electric NVT. But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Right now, TDK Corp. is sporting a Zacks Rank of #1 (Strong Buy), while nVent Electric has a Zacks Rank of #3 (Hold). This means that TTDKY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

TTDKY currently has a forward P/E ratio of 16.19, while NVT has a forward P/E of 19.01. We also note that TTDKY has a PEG ratio of 0.58. 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. NVT currently has a PEG ratio of 1.19.

Another notable valuation metric for TTDKY is its P/B ratio of 2.20. 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, NVT has a P/B of 3.14.

These metrics, and several others, help TTDKY earn a Value grade of B, while NVT has been given a Value grade of C.

TTDKY 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 TTDKY is likely the superior value option right now.

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