Joel Anderson, contributor to, highlights five stocks from the fast-growing tech sector that are surprisingly trading lower than book value.

Technology is not traditionally a sector that excites more conservative value investors. Classic methods of valuation that are popular among value investors, like book value or strong dividends, are largely absent from most tech firms. Apple (AAPL), despite cash reserves that have no doubt cleared $100 billion by now, still hasn’t offered a dividend, opting to reinvest its profits into its operations.

Since book value is based entirely on the tangible value of a company’s property and assets, companies developing intellectual property or other intangible assets often times show up with limited book values.

However, there are those tech firms out there that might still appeal to more conservative investors. Each of these five companies offers a dividend, has a price-to-book ratio (the total value of a company’s equity divided by its total book value) under 1.0, and has a book value per share of over $4.50.

While the tech sector hasn’t traditionally offered the value investor much, these companies are closer to the sort of stock that might excite even the most conservative investor or trader.

STMicroelectronics (STM) is a Swiss semiconductor company designing, developing, and manufacturing a range of semiconductor products for microelectronic applications including computer peripherals, automotive products, and telecommunication systems. It has a market cap of $6.71 billion, a dividend yield of 5.28%, a price-to-book ratio of 0.88, and a book value per share of $8.59.


Click to Enlarge

AU Optronics Corp. (AUO) is a Taiwanese company working in computer peripherals that designs and builds flat panel display screens, primarily thin film transistor liquid crystal display products. It has a market cap of $4.78 billion, a dividend yield of 2.55%, a price-to-book ratio of 0.69, and a book value per share of $7.88.


Click to Enlarge

NEXT: 3 More Tech Stocks Suitable for Value Investors

Corning Incorporated (GLW) was founded in 1851 as Corning Glass Works and only changed its name to Corning Incorporated in 1989. The company manufactures ceramics and glassware primarily for use in scientific and industrial purposes. It has a market cap of $20.18 billion, a dividend yield of 2.26%, a price-to-book ratio of 0.96, and a book value per share of $13.91.


Click to Enlarge

Tellabs (TLAB) designs and markets equipment and services to communication providers. Tellabs, based out of Naperville, IL, offers services for wireline and wireless voice, data, and video services. It has a market cap of $1.43 billion, a dividend yield of 2.04%, a price-to-book ratio of 0.87, and a book value per share of $4.50.


Click to Enlarge

Kyocera Corporation (KYO) is a Japanese company that provides a variety of products for the global information and communications market and environment and energy market. It has a market cap of $16.76 billion, a dividend yield of 1.42%, a price-to-book ratio of 0.96, and a book value per share of $95.42.


Click to Enlarge

By Joel Anderson, contributor,

Related Articles
  1. Stock Analysis

    Will J.C. Penney Come Back in 2016? (JCP)

    J.C. Penney is without a doubt turning itself around, but that doesn't guarantee the stock will respond immediately.
  2. Stock Analysis

    Allstate: How Being Boring Earns it Billions (ALL)

    A summary of what Allstate Insurance sells and whom it sells it to including recent mergers and acquisitions that have helped boost its bottom line.
  3. Economics

    Long-Term Investing Impact of the Paris Attacks

    We share some insights on how the recent terrorist attacks in Paris could impact the economy and markets going forward.
  4. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  5. Investing Basics

    How to Deduct Your Stock Losses

    Held onto a stock for too long? Selling at a loss is never ideal, but it is possible to minimize the damage. Here's how.
  6. Economics

    Is Wall Street Living in Denial?

    Will remaining calm and staying long present significant risks to your investment health?
  7. Stock Analysis

    When Will Dick's Sporting Goods Bounce Back? (DKS)

    Is DKS a bargain here?
  8. Investing News

    How AT&T Evolved into a Mobile Phone Giant

    A third of Americans use an AT&T mobile phone. How did it evolve from a state-sponsored monopoly, though antitrust and a technological revolution?
  9. Stock Analysis

    Home Depot: Can its Shares Continue Climbing?

    Home Depot has outperformed the market by a wide margin in the last 12 months. Is this sustainable?
  10. Stock Analysis

    Yelp: Can it Regain its Losses in 2016? (YELP)

    Yelp investors have had reason to be happy recently. Will the good spirits last?
  1. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  2. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  5. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>
  6. What is the difference between issued share capital and subscribed share capital?

    The difference between subscribed share capital and issued share capital is the former relates to the amount of stock for ... Read Full Answer >>

You May Also Like

Trading Center