Back to top

Image: Bigstock

ALOT or SSTI: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with AstroNova (ALOT - Free Report) and ShotSpotter (SSTI - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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.

AstroNova has a Zacks Rank of #2 (Buy), while ShotSpotter has a Zacks Rank of #3 (Hold) right now. This means that ALOT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

ALOT currently has a forward P/E ratio of 60.69, while SSTI has a forward P/E of 214.78. We also note that ALOT has a PEG ratio of 5.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SSTI currently has a PEG ratio of 10.74.

Another notable valuation metric for ALOT is its P/B ratio of 0.78. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SSTI has a P/B of 11.70.

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

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AstroNova, Inc. (ALOT) - free report >>

SoundThinking, Inc. (SSTI) - free report >>

Published in