BELFB vs. GRMN: Which Stock Should Value Investors Buy Now?

Investors with an interest in Electronics – Miscellaneous Products stocks have likely encountered both Bel Fuse (BELFB Quick QuoteBELFB – Free Report) and Garmin (GRMN Quick QuoteGRMN – Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Bel Fuse and Garmin are both sporting a Zacks Rank of # 1 (Strong Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company’s fair value.

BELFB currently has a forward P/E ratio of 19.51, while GRMN has a forward P/E of 29.87. We also note that BELFB has a PEG ratio of 1.30. 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. GRMN currently has a PEG ratio of 1.38.

Another notable valuation metric for BELFB is its P/B ratio of 2.78. 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, GRMN has a P/B of 5.36.

These metrics, and several others, help BELFB earn a Value grade of B, while GRMN has been given a Value grade of D.

Both BELFB and GRMN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BELFB is the superior value option right now.