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VNT vs. DOCU: Which Stock Is the Better Value Option?
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Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and DocuSign (DOCU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Vontier Corporation and DocuSign are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
VNT currently has a forward P/E ratio of 11.69, while DOCU has a forward P/E of 141.55. We also note that VNT 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. DOCU currently has a PEG ratio of 3.02.
Another notable valuation metric for VNT is its P/B ratio of 11.87. 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, DOCU has a P/B of 223.89.
These metrics, and several others, help VNT earn a Value grade of A, while DOCU has been given a Value grade of D.
VNT sticks out from DOCU in both our Zacks Rank and Style Scores models, so value investors will likely feel that VNT is the better option right now.
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VNT vs. DOCU: Which Stock Is the Better Value Option?
Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and DocuSign (DOCU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.
Vontier Corporation and DocuSign are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
VNT currently has a forward P/E ratio of 11.69, while DOCU has a forward P/E of 141.55. We also note that VNT 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. DOCU currently has a PEG ratio of 3.02.
Another notable valuation metric for VNT is its P/B ratio of 11.87. 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, DOCU has a P/B of 223.89.
These metrics, and several others, help VNT earn a Value grade of A, while DOCU has been given a Value grade of D.
VNT sticks out from DOCU in both our Zacks Rank and Style Scores models, so value investors will likely feel that VNT is the better option right now.