We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VNT vs. AQUA: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and Evoqua Water . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both Vontier Corporation and Evoqua Water are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VNT currently has a forward P/E ratio of 9.14, while AQUA has a forward P/E of 50.96. We also note that VNT has a PEG ratio of 3.22. 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 3.40.
Another notable valuation metric for VNT is its P/B ratio of 7. 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, AQUA has a P/B of 8.01.
These metrics, and several others, help VNT earn a Value grade of A, while AQUA has been given a Value grade of C.
Both VNT and AQUA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we 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:
Image: Bigstock
VNT vs. AQUA: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and Evoqua Water . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both Vontier Corporation and Evoqua Water are sporting a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
VNT currently has a forward P/E ratio of 9.14, while AQUA has a forward P/E of 50.96. We also note that VNT has a PEG ratio of 3.22. 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 3.40.
Another notable valuation metric for VNT is its P/B ratio of 7. 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, AQUA has a P/B of 8.01.
These metrics, and several others, help VNT earn a Value grade of A, while AQUA has been given a Value grade of C.
Both VNT and AQUA are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VNT is the superior value option right now.