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SCSC or SYM: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with ScanSource (SCSC - Free Report) and Symbotic Inc. (SYM - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, ScanSource is sporting a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SCSC likely has seen a stronger improvement to its earnings outlook than SYM has recently. But this is just one piece of the puzzle 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.
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.
SCSC currently has a forward P/E ratio of 9.66, while SYM has a forward P/E of 148.62. We also note that SCSC has a PEG ratio of 0.64. 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. SYM currently has a PEG ratio of 4.95.
Another notable valuation metric for SCSC is its P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SYM has a P/B of 73.15.
These metrics, and several others, help SCSC earn a Value grade of A, while SYM has been given a Value grade of F.
SCSC has seen stronger estimate revision activity and sports more attractive valuation metrics than SYM, so it seems like value investors will conclude that SCSC is the superior option right now.
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SCSC or SYM: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with ScanSource (SCSC - Free Report) and Symbotic Inc. (SYM - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, ScanSource is sporting a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that SCSC likely has seen a stronger improvement to its earnings outlook than SYM has recently. But this is just one piece of the puzzle 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.
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.
SCSC currently has a forward P/E ratio of 9.66, while SYM has a forward P/E of 148.62. We also note that SCSC has a PEG ratio of 0.64. 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. SYM currently has a PEG ratio of 4.95.
Another notable valuation metric for SCSC is its P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SYM has a P/B of 73.15.
These metrics, and several others, help SCSC earn a Value grade of A, while SYM has been given a Value grade of F.
SCSC has seen stronger estimate revision activity and sports more attractive valuation metrics than SYM, so it seems like value investors will conclude that SCSC is the superior option right now.