Yahoo Finance UMC vs. LSCC: Which Stock Is the Better Value Option?
Investors interested in Electronics - Semiconductors stocks are likely familiar with United Microelectronics Corporation (UMC) and Lattice Semiconductor (LSCC). 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, United Microelectronics Corporation has a Zacks Rank of #2 (Buy), while Lattice Semiconductor 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 UMC is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
UMC currently has a forward P/E ratio of 14.10, while LSCC has a forward P/E of 48.14. We also note that UMC has a PEG ratio of 2.91. 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. LSCC currently has a PEG ratio of 7.12.
Another notable valuation metric for UMC is its P/B ratio of 1.84. 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, LSCC has a P/B of 11.41.
Based on these metrics and many more, UMC holds a Value grade of B, while LSCC has a Value grade of F.
UMC sticks out from LSCC in both our Zacks Rank and Style Scores models, so value investors will likely feel that UMC is the better option right now.
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United Microelectronics Corporation (UMC) : Free Stock Analysis Report
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
