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SPXC vs. TRI: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with SPX Technologies (SPXC - Free Report) and Thomson Reuters (TRI - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, both SPX Technologies and Thomson Reuters are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

SPXC currently has a forward P/E ratio of 19.64, while TRI has a forward P/E of 41.10. We also note that SPXC has a PEG ratio of 1.09. 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. TRI currently has a PEG ratio of 3.69.

Another notable valuation metric for SPXC is its P/B ratio of 3.36. 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, TRI has a P/B of 5.71.

These are just a few of the metrics contributing to SPXC's Value grade of B and TRI's Value grade of D.

Both SPXC and TRI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC is the superior value option right now.


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