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JBTM vs. TRI: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with JBT Marel (JBTM - Free Report) and Thomson Reuters (TRI - 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.

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.

JBT Marel has a Zacks Rank of #2 (Buy), while Thomson Reuters has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that JBTM likely has seen a stronger improvement to its earnings outlook than TRI has recently. But this is only part of the picture 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.

JBTM currently has a forward P/E ratio of 21.38, while TRI has a forward P/E of 43.65. We also note that JBTM has a PEG ratio of 2.49. 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. TRI currently has a PEG ratio of 5.46.

Another notable valuation metric for JBTM is its P/B ratio of 2.56. 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, TRI has a P/B of 6.37.

Based on these metrics and many more, JBTM holds a Value grade of B, while TRI has a Value grade of D.

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


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