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MPTI or ACM: 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 M-tron Industries, Inc. (MPTI - Free Report) and Aecom Technology (ACM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, M-tron Industries, Inc. is sporting a Zacks Rank of #2 (Buy), while Aecom Technology has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MPTI is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

MPTI currently has a forward P/E ratio of 14.63, while ACM has a forward P/E of 21.96. We also note that MPTI has a PEG ratio of 0.64. 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. ACM currently has a PEG ratio of 1.45.

Another notable valuation metric for MPTI is its P/B ratio of 4.12. 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, ACM has a P/B of 5.48.

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

MPTI sticks out from ACM in both our Zacks Rank and Style Scores models, so value investors will likely feel that MPTI is the better option right now.


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