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VNT vs. DUOL: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and Duolingo, Inc. (DUOL - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Vontier Corporation and Duolingo, Inc. are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.

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 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.

VNT currently has a forward P/E ratio of 11.60, while DUOL has a forward P/E of 163.72. We also note that VNT has a PEG ratio of 1.24. 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. DUOL currently has a PEG ratio of 3.64.

Another notable valuation metric for VNT is its P/B ratio of 4.75. 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, DUOL has a P/B of 24.31.

These metrics, and several others, help VNT earn a Value grade of B, while DUOL has been given a Value grade of F.

Both VNT and DUOL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that VNT is the superior value option right now.

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