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SMGZY vs. RKT: Which Stock Is the Better Value Option?
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Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY - Free Report) and Rocket Companies (RKT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Smiths Group PLC and Rocket Companies 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 SMGZY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
SMGZY currently has a forward P/E ratio of 15.57, while RKT has a forward P/E of 37.96. We also note that SMGZY has a PEG ratio of 1.66. 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. RKT currently has a PEG ratio of 7.59.
Another notable valuation metric for SMGZY is its P/B ratio of 2.45. 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, RKT has a P/B of 2.94.
These metrics, and several others, help SMGZY earn a Value grade of B, while RKT has been given a Value grade of C.
SMGZY sticks out from RKT in both our Zacks Rank and Style Scores models, so value investors will likely feel that SMGZY is the better option right now.
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SMGZY vs. RKT: Which Stock Is the Better Value Option?
Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY - Free Report) and Rocket Companies (RKT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 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.
Smiths Group PLC and Rocket Companies 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 SMGZY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture 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 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.
SMGZY currently has a forward P/E ratio of 15.57, while RKT has a forward P/E of 37.96. We also note that SMGZY has a PEG ratio of 1.66. 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. RKT currently has a PEG ratio of 7.59.
Another notable valuation metric for SMGZY is its P/B ratio of 2.45. 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, RKT has a P/B of 2.94.
These metrics, and several others, help SMGZY earn a Value grade of B, while RKT has been given a Value grade of C.
SMGZY sticks out from RKT in both our Zacks Rank and Style Scores models, so value investors will likely feel that SMGZY is the better option right now.