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

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Investors with an interest in Technology Services stocks have likely encountered both JBT Marel (JBTM - Free Report) and Enpro (NPO - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

JBT Marel and Enpro are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that JBTM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.

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.

JBTM currently has a forward P/E ratio of 15.61, while NPO has a forward P/E of 28.42. We also note that JBTM has a PEG ratio of 1.35. 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. NPO currently has a PEG ratio of 1.89.

Another notable valuation metric for JBTM is its P/B ratio of 1.49. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, NPO has a P/B of 3.42.

Based on these metrics and many more, JBTM holds a Value grade of B, while NPO has a Value grade of C.

JBTM 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 JBTM is likely the superior value option right now.

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