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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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Vontier Corporation has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold). This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VNT currently has a forward P/E ratio of 8.02, while DOCU has a forward P/E of 44.05. We also note that VNT has a PEG ratio of 1.29. 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 2.67.
Another notable valuation metric for VNT is its P/B ratio of 7.61. 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, DOCU has a P/B of 62.74.
These are just a few of the metrics contributing to VNT's Value grade of A and DOCU's 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 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.
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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Vontier Corporation has a Zacks Rank of #2 (Buy), while DocuSign has a Zacks Rank of #3 (Hold). This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
VNT currently has a forward P/E ratio of 8.02, while DOCU has a forward P/E of 44.05. We also note that VNT has a PEG ratio of 1.29. 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 2.67.
Another notable valuation metric for VNT is its P/B ratio of 7.61. 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, DOCU has a P/B of 62.74.
These are just a few of the metrics contributing to VNT's Value grade of A and DOCU's 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.