KE vs. HOCPY: Which Stock Is the Better Value Option?

Core Viewpoint - Kimball Electronics (KE) is currently viewed as a more attractive investment option compared to Hoya Corp. (HOCPY) for value investors, based on various valuation metrics and earnings outlooks [1][3][7]. Valuation Metrics - KE has a forward P/E ratio of 21.05, while HOCPY has a significantly higher forward P/E of 34.40 [5]. - KE's PEG ratio stands at 1.05, indicating a favorable valuation in relation to its expected earnings growth, whereas HOCPY's PEG ratio is 2.99 [5]. - KE's P/B ratio is 1.21, which is much lower than HOCPY's P/B ratio of 7.58, suggesting that KE is undervalued compared to its book value [6]. Earnings Outlook - KE has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook with recent revisions to earnings estimates, while HOCPY has a Zacks Rank of 4 (Sell) [3][7]. - The stronger estimate revision activity for KE compared to HOCPY further supports the conclusion that KE is the superior option for value investors [7].