Investors interested in Electronics - Miscellaneous Products stocks are likely familiar with Daikin Industries (DKILY) and Garmin (GRMN). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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.

Daikin Industries has a Zacks Rank of #2 (Buy), while Garmin has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DKILY likely has seen a stronger improvement to its earnings outlook than GRMN has recently. But this is just one piece of the puzzle 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.

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.

DKILY currently has a forward P/E ratio of 18.72, while GRMN has a forward P/E of 27.52. We also note that DKILY has a PEG ratio of 1.81. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GRMN currently has a PEG ratio of 3.42.

Another notable valuation metric for DKILY is its P/B ratio of 1.87. 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, GRMN has a P/B of 4.45.

These are just a few of the metrics contributing to DKILY's Value grade of A and GRMN's Value grade of D.

DKILY sticks out from GRMN in both our Zacks Rank and Style Scores models, so value investors will likely feel that DKILY is the better option right now.

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