Back to top

Image: Bigstock

VNT vs. PLTR: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with Vontier Corporation (VNT - Free Report) and Palantir Technologies Inc. (PLTR - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Vontier Corporation and Palantir Technologies Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), 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 5.43, while PLTR has a forward P/E of 140.12. We also note that VNT has a PEG ratio of 0.89. 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. PLTR currently has a PEG ratio of 4.53.

Another notable valuation metric for VNT is its P/B ratio of 5.52. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PLTR has a P/B of 6.97.

These are just a few of the metrics contributing to VNT's Value grade of A and PLTR's Value grade of F.

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


See More Zacks Research for These Tickers


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


Palantir Technologies Inc. (PLTR) - free report >>

Vontier Corporation (VNT) - free report >>

Published in