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VNT vs. CLBT: Which Stock Is the Better Value Option?

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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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.

Vontier Corporation and Cellebrite DI Ltd. are both sporting a Zacks Rank of # 2 (Buy) right now. 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 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 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 13.99, while CLBT has a forward P/E of 36.51. We also note that VNT has a PEG ratio of 1.29. 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. CLBT currently has a PEG ratio of 2.03.

Another notable valuation metric for VNT is its P/B ratio of 7.59. 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, CLBT has a P/B of 63.43.

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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