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VNT or AQUA: Which Is the Better Value Stock Right Now?
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Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and Evoqua Water . 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vontier Corporation has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold) 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 analyze a variety of traditional, tried-and-true metrics to help find companies 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.
VNT currently has a forward P/E ratio of 9.02, while AQUA has a forward P/E of 49.41. We also note that VNT has a PEG ratio of 3.18. 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. AQUA currently has a PEG ratio of 3.29.
Another notable valuation metric for VNT is its P/B ratio of 6.91. 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, AQUA has a P/B of 7.76.
These are just a few of the metrics contributing to VNT's Value grade of B and AQUA's Value grade of D.
VNT stands above AQUA 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 or AQUA: Which Is the Better Value Stock Right Now?
Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and Evoqua Water . 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Vontier Corporation has a Zacks Rank of #2 (Buy), while Evoqua Water has a Zacks Rank of #3 (Hold) 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 analyze a variety of traditional, tried-and-true metrics to help find companies 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.
VNT currently has a forward P/E ratio of 9.02, while AQUA has a forward P/E of 49.41. We also note that VNT has a PEG ratio of 3.18. 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. AQUA currently has a PEG ratio of 3.29.
Another notable valuation metric for VNT is its P/B ratio of 6.91. 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, AQUA has a P/B of 7.76.
These are just a few of the metrics contributing to VNT's Value grade of B and AQUA's Value grade of D.
VNT stands above AQUA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNT is the superior value option right now.