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VNT vs. CLBT: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and Cellebrite DI Ltd. (CLBT - 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 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 Cellebrite DI Ltd. are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

VNT currently has a forward P/E ratio of 13.69, while CLBT has a forward P/E of 38.98. We also note that VNT has a PEG ratio of 1.26. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CLBT currently has a PEG ratio of 2.16.

Another notable valuation metric for VNT is its P/B ratio of 7.43. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CLBT has a P/B of 67.73.

These are just a few of the metrics contributing to VNT's Value grade of B and CLBT's Value grade of C.

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


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