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BCKIY or MPTI: Which Is the Better Value Stock Right Now?

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Investors with an interest in Engineering - R and D Services stocks have likely encountered both Babcock International Group PLC (BCKIY - Free Report) and M-tron Industries, Inc. (MPTI - Free Report) . 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.

Right now, Babcock International Group PLC is sporting a Zacks Rank of #2 (Buy), while M-tron Industries, Inc. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BCKIY likely has seen a stronger improvement to its earnings outlook than MPTI has recently. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.

BCKIY currently has a forward P/E ratio of 12.22, while MPTI has a forward P/E of 21.84. We also note that BCKIY has a PEG ratio of 0.34. 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. MPTI currently has a PEG ratio of 0.73.

Another notable valuation metric for BCKIY is its P/B ratio of 5.92. 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, MPTI has a P/B of 6.54.

These metrics, and several others, help BCKIY earn a Value grade of A, while MPTI has been given a Value grade of D.

BCKIY stands above MPTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BCKIY is the superior value option right now.


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