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MPTI or ALFVY: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI - Free Report) or Alfa Laval AB Unsponsored ADR (ALFVY - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

M-tron Industries, Inc. has a Zacks Rank of #2 (Buy), while Alfa Laval AB Unsponsored ADR has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that MPTI has an improving earnings outlook. However, value investors will care about much more than just this.

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.

MPTI currently has a forward P/E ratio of 20.34, while ALFVY has a forward P/E of 21.49. We also note that MPTI has a PEG ratio of 0.73. 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. ALFVY currently has a PEG ratio of 2.53.

Another notable valuation metric for MPTI is its P/B ratio of 3.89. 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, ALFVY has a P/B of 4.6.

These are just a few of the metrics contributing to MPTI's Value grade of B and ALFVY's Value grade of D.

MPTI is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MPTI is likely the superior value option right now.


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Alfa Laval AB Unsponsored ADR (ALFVY) - free report >>

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