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SNE vs. GPRO: Which Stock Is the Better Value Option?

Investors interested in Audio Video Production stocks are likely familiar with Sony (SNE) and GoPro (GPRO). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Right now, Sony is sporting a Zacks Rank of #2 (Buy), while GoPro 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 SNE has an improving earnings outlook. But this is only part of the picture 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

SNE currently has a forward P/E ratio of 9.96, while GPRO has a forward P/E of 21.58. We also note that SNE has a PEG ratio of 0.99. 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. GPRO currently has a PEG ratio of 2.16.

Another notable valuation metric for SNE is its P/B ratio of 1.74. 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, GPRO has a P/B of 4.02.

These are just a few of the metrics contributing to SNE's Value grade of A and GPRO's Value grade of F.

SNE has seen stronger estimate revision activity and sports more attractive valuation metrics than GPRO, so it seems like value investors will conclude that SNE is the superior option right now.


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Sony Corporation (SNE): Free Stock Analysis Report
 
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