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VNT or VLTO: 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 Veralto (VLTO - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Vontier Corporation and Veralto are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. 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 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 11.18, while VLTO has a forward P/E of 23.87. We also note that VNT has a PEG ratio of 2.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VLTO currently has a PEG ratio of 4.62.

Another notable valuation metric for VNT is its P/B ratio of 7.08. 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, VLTO has a P/B of 17.97.

These metrics, and several others, help VNT earn a Value grade of A, while VLTO has been given a Value grade of C.

VNT stands above VLTO 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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