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APTV vs. SAIL: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Technology Services sector have probably already heard of Aptiv (APTV - Free Report) and SailPoint Technologies . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Aptiv has a Zacks Rank of #2 (Buy), while SailPoint Technologies has a Zacks Rank of #3 (Hold) right now. This means that APTV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

APTV currently has a forward P/E ratio of 17.33, while SAIL has a forward P/E of 324.17. We also note that APTV has a PEG ratio of 1.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SAIL currently has a PEG ratio of 19.45.

Another notable valuation metric for APTV is its P/B ratio of 6.67. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SAIL has a P/B of 7.11.

These metrics, and several others, help APTV earn a Value grade of B, while SAIL has been given a Value grade of F.

APTV has seen stronger estimate revision activity and sports more attractive valuation metrics than SAIL, so it seems like value investors will conclude that APTV is the superior option right now.


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