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KD vs. VLTO: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Kyndryl Holdings, Inc. (KD - Free Report) and Veralto (VLTO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kyndryl Holdings, Inc. and Veralto are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that KD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KD currently has a forward P/E ratio of 22.87, while VLTO has a forward P/E of 29.88. We also note that KD has a PEG ratio of 4.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VLTO currently has a PEG ratio of 4.58.
Another notable valuation metric for KD is its P/B ratio of 4.87. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VLTO has a P/B of 16.57.
Based on these metrics and many more, KD holds a Value grade of A, while VLTO has a Value grade of C.
KD stands above VLTO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KD is the superior value option right now.
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KD vs. VLTO: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Kyndryl Holdings, Inc. (KD - Free Report) and Veralto (VLTO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Kyndryl Holdings, Inc. and Veralto are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. This means that KD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
KD currently has a forward P/E ratio of 22.87, while VLTO has a forward P/E of 29.88. We also note that KD has a PEG ratio of 4.57. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. VLTO currently has a PEG ratio of 4.58.
Another notable valuation metric for KD is its P/B ratio of 4.87. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VLTO has a P/B of 16.57.
Based on these metrics and many more, KD holds a Value grade of A, while VLTO has a Value grade of C.
KD stands above VLTO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KD is the superior value option right now.