CXT vs. CXM: Which Stock Is the Better Value Option?

CXM CXT

Investors looking for stocks in the Technology Services sector might want to consider either Crane NXT (CXT - Free Report) or Sprinkler (CXM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Crane NXT and Sprinkler are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture 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.

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.

CXT currently has a forward P/E ratio of 14.60, while CXM has a forward P/E of 73.10. We also note that CXT has a PEG ratio of 1.96. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CXM currently has a PEG ratio of 2.44.

Another notable valuation metric for CXT is its P/B ratio of 4. 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, CXM has a P/B of 7.09.

These are just a few of the metrics contributing to CXT's Value grade of B and CXM's Value grade of F.

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

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