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VNT vs. DOCU: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and DocuSign (DOCU - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Vontier Corporation has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. 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 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.
VNT currently has a forward P/E ratio of 8.49, while DOCU has a forward P/E of 36.04. We also note that VNT has a PEG ratio of 1.37. 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. DOCU currently has a PEG ratio of 2.19.
Another notable valuation metric for VNT is its P/B ratio of 8.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DOCU has a P/B of 51.52.
These metrics, and several others, help VNT earn a Value grade of A, while DOCU has been given a Value grade of D.
VNT stands above DOCU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNT is the superior value option right now.
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VNT vs. DOCU: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and DocuSign (DOCU - 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.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Vontier Corporation has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. 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 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.
VNT currently has a forward P/E ratio of 8.49, while DOCU has a forward P/E of 36.04. We also note that VNT has a PEG ratio of 1.37. 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. DOCU currently has a PEG ratio of 2.19.
Another notable valuation metric for VNT is its P/B ratio of 8.05. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, DOCU has a P/B of 51.52.
These metrics, and several others, help VNT earn a Value grade of A, while DOCU has been given a Value grade of D.
VNT stands above DOCU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNT is the superior value option right now.