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VNT or DUOL: Which Is the Better Value Stock Right Now?

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Investors interested in Technology Services stocks are likely familiar with 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Vontier Corporation and Duolingo, Inc. are both sporting a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

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.

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.

VNT currently has a forward P/E ratio of 12.25, while DUOL has a forward P/E of 138.78. We also note that VNT has a PEG ratio of 1.31. 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. DUOL currently has a PEG ratio of 3.09.

Another notable valuation metric for VNT is its P/B ratio of 5.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DUOL has a P/B of 20.48.

These are just a few of the metrics contributing to VNT's Value grade of A and DUOL's 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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