Back to top

Image: Bigstock

JBTM or NPO: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Technology Services sector might want to consider either JBT Marel (JBTM - Free Report) or Enpro (NPO - 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both JBT Marel and Enpro are sporting a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.

JBTM currently has a forward P/E ratio of 15.82, while NPO has a forward P/E of 27.28. We also note that JBTM has a PEG ratio of 1.37. 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. NPO currently has a PEG ratio of 1.82.

Another notable valuation metric for JBTM is its P/B ratio of 1.51. 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, NPO has a P/B of 3.28.

These metrics, and several others, help JBTM earn a Value grade of B, while NPO has been given a Value grade of D.

Both JBTM and NPO are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JBTM is the superior value option right now.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in