GFS vs. LSCC: Which Stock Is the Better Value Option?

Group 1 - GlobalFoundries Inc. (GFS) and Lattice Semiconductor (LSCC) are being compared for their value to investors, with GFS currently having a Zacks Rank of 2 (Buy) and LSCC at 4 (Sell) [3] - GFS is likely experiencing an improvement in its earnings outlook compared to LSCC, which is a significant factor for value investors [3] - Value investors analyze various traditional metrics to assess whether a company is undervalued, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Group 2 - GFS has a forward P/E ratio of 19.70, while LSCC has a significantly higher forward P/E of 58.38, indicating that GFS may be more attractively priced [5] - The PEG ratio for GFS is 0.85, suggesting a favorable valuation relative to its expected earnings growth, whereas LSCC has a PEG ratio of 1.69 [5] - GFS's P/B ratio is 1.56, compared to LSCC's much higher P/B of 12.15, further indicating GFS's relative undervaluation [6] - Based on these valuation metrics, GFS holds a Value grade of B, while LSCC has a Value grade of F, making GFS the more appealing option for value investors [6]