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PKI or MTD: Which Is the Better Value Stock Right Now?

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Investors interested in Instruments - Scientific stocks are likely familiar with PerkinElmer (PKI - Free Report) and Mettler-Toledo (MTD - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Currently, PerkinElmer has a Zacks Rank of #2 (Buy), while Mettler-Toledo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PKI likely has seen a stronger improvement to its earnings outlook than MTD has recently. However, value investors will care about much more than just this.

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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

PKI currently has a forward P/E ratio of 17.72, while MTD has a forward P/E of 43.74. We also note that PKI has a PEG ratio of 0.43. 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. MTD currently has a PEG ratio of 2.58.

Another notable valuation metric for PKI is its P/B ratio of 4.67. 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, MTD has a P/B of 173.58.

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

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


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PerkinElmer, Inc. (PKI) - free report >>

MettlerToledo International, Inc. (MTD) - free report >>

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