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ALYAF or SYM: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Alithya Group (ALYAF - Free Report) and Symbotic Inc. (SYM - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Alithya Group and Symbotic Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that ALYAF's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.

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.

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.

ALYAF currently has a forward P/E ratio of 8.77, while SYM has a forward P/E of 228.75. We also note that ALYAF has a PEG ratio of 0.63. 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. SYM currently has a PEG ratio of 7.63.

Another notable valuation metric for ALYAF is its P/B ratio of 1.24. 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, SYM has a P/B of 68.13.

These are just a few of the metrics contributing to ALYAF's Value grade of A and SYM's Value grade of F.

ALYAF stands above SYM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALYAF is the superior value option right now.


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