KE or HOCPY: Which Is the Better Value Stock Right Now?

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 financial metrics and Zacks Rank evaluations [1][3][6]. Group 1: Zacks Rank and Earnings Outlook - Kimball Electronics holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Hoya Corp. has a Zacks Rank of 4 (Sell) [3]. - The Zacks Rank emphasizes stocks with positive revisions to earnings estimates, suggesting that KE has an improving earnings outlook [3]. Group 2: Valuation Metrics - KE has a forward P/E ratio of 20.82, significantly lower than HOCPY's forward P/E of 35.18, indicating that KE may be undervalued [5]. - The PEG ratio for KE is 1.04, while HOCPY's PEG ratio is 3.05, further supporting the notion that KE is a better value option [5]. - KE's P/B ratio stands at 1.19, compared to HOCPY's P/B of 7.64, highlighting KE's superior valuation metrics [6]. Group 3: Value Grades - Based on the analysis of various financial metrics, KE has received a Value grade of A, while HOCPY has a Value grade of D, reinforcing KE's position as the superior value option [6].