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MPTI vs. ACM: Which Stock Is the Better Value Option?

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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 companies is the best option for those looking for undervalued stocks? 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 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.

M-tron Industries, Inc. and Aecom Technology are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that MPTI likely has seen a stronger improvement to its earnings outlook than ACM has recently. 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 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.

MPTI currently has a forward P/E ratio of 12.98, while ACM has a forward P/E of 20.79. We also note that MPTI has a PEG ratio of 0.56. 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. ACM currently has a PEG ratio of 1.37.

Another notable valuation metric for MPTI is its P/B ratio of 3.66. 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 5.18.

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

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


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