INTT vs. KEYS: Which Stock Is the Better Value Option?

INTT KEYS

Investors interested in Electronics - Measuring Instruments stocks are likely familiar with inTest Corporation (INTT - Free Report) and Keysight (KEYS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, inTest Corporation has a Zacks Rank of #2 (Buy), while Keysight has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INTT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

INTT currently has a forward P/E ratio of 11, while KEYS has a forward P/E of 24.95. We also note that INTT has a PEG ratio of 1.10. 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. KEYS currently has a PEG ratio of 2.40.

Another notable valuation metric for INTT is its P/B ratio of 2.33. 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, KEYS has a P/B of 7.55.

Based on these metrics and many more, INTT holds a Value grade of B, while KEYS has a Value grade of C.

INTT stands above KEYS thanks to its solid earnings outlook, and based on these valuation figures, we also feel that INTT is the superior value option right now.

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