J or FUTU: Which Is the Better Value Stock Right Now?

FUTU J

Investors looking for stocks in the Technology Services sector might want to consider either Jacobs Solutions (J - Free Report) or Futu Holdings Limited Sponsored ADR (FUTU - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Jacobs Solutions and Futu Holdings Limited Sponsored ADR are both sporting a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

J currently has a forward P/E ratio of 15.44, while FUTU has a forward P/E of 17.11. We also note that J has a PEG ratio of 1.51. 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. FUTU currently has a PEG ratio of 7.92.

Another notable valuation metric for J is its P/B ratio of 2.31. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FUTU has a P/B of 2.80.

These metrics, and several others, help J earn a Value grade of B, while FUTU has been given a Value grade of D.

Both J and FUTU are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that J is the superior value option right now.

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