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SMGZY vs. CXM: Which Stock Is the Better Value Option?
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Investors with an interest in Technology Services stocks have likely encountered both Smiths Group PLC (SMGZY - Free Report) and Sprinkler (CXM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Sprinkler has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SMGZY likely has seen a stronger improvement to its earnings outlook than CXM has recently. But this is just one piece of the puzzle 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 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.
SMGZY currently has a forward P/E ratio of 15.82, while CXM has a forward P/E of 52.13. We also note that SMGZY has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CXM currently has a PEG ratio of 1.74.
Another notable valuation metric for SMGZY is its P/B ratio of 2.48. 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, CXM has a P/B of 6.85.
These metrics, and several others, help SMGZY earn a Value grade of A, while CXM has been given a Value grade of F.
SMGZY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SMGZY is likely the superior value option right now.
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SMGZY vs. CXM: Which Stock Is the Better Value Option?
Investors with an interest in Technology Services stocks have likely encountered both Smiths Group PLC (SMGZY - Free Report) and Sprinkler (CXM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Smiths Group PLC is sporting a Zacks Rank of #2 (Buy), while Sprinkler has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that SMGZY likely has seen a stronger improvement to its earnings outlook than CXM has recently. But this is just one piece of the puzzle 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 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.
SMGZY currently has a forward P/E ratio of 15.82, while CXM has a forward P/E of 52.13. We also note that SMGZY has a PEG ratio of 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CXM currently has a PEG ratio of 1.74.
Another notable valuation metric for SMGZY is its P/B ratio of 2.48. 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, CXM has a P/B of 6.85.
These metrics, and several others, help SMGZY earn a Value grade of A, while CXM has been given a Value grade of F.
SMGZY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that SMGZY is likely the superior value option right now.