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VNT or SPXC: 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 SPX Technologies (SPXC - 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, Vontier Corporation has a Zacks Rank of #2 (Buy), while SPX Technologies has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VNT has an improving earnings outlook. 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.

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 13.32, while SPXC has a forward P/E of 27.95. We also note that VNT has a PEG ratio of 1.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SPXC currently has a PEG ratio of 1.55.

Another notable valuation metric for VNT is its P/B ratio of 5.13. 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, SPXC has a P/B of 5.56.

Based on these metrics and many more, VNT holds a Value grade of A, while SPXC has a Value grade of C.

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


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