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

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Investors interested in Technology Services stocks are likely familiar with V2X (VVX - Free Report) and Symbotic Inc. (SYM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

V2X and Symbotic Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VVX is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

VVX currently has a forward P/E ratio of 12.14, while SYM has a forward P/E of 158.74. We also note that VVX has a PEG ratio of 0.62. 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. SYM currently has a PEG ratio of 5.29.

Another notable valuation metric for VVX is its P/B ratio of 1.77. 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, SYM has a P/B of 83.94.

Based on these metrics and many more, VVX holds a Value grade of A, while SYM has a Value grade of F.

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


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