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SMGZY vs. IBTA: Which Stock Is the Better Value Option?

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Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY - Free Report) and Ibotta (IBTA - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Smiths Group PLC and Ibotta are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that SMGZY's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

SMGZY currently has a forward P/E ratio of 16.61, while IBTA has a forward P/E of 41.31. We also note that SMGZY has a PEG ratio of 1.46. 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. IBTA currently has a PEG ratio of 4.39.

Another notable valuation metric for SMGZY is its P/B ratio of 3.07. 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, IBTA has a P/B of 3.34.

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

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


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Smiths Group PLC (SMGZY) - free report >>

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