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

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Investors looking for stocks in the Technology Services sector might want to consider either JBT Marel (JBTM - Free Report) or Trane Technologies (TT - 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.

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.

Currently, both JBT Marel and Trane Technologies are holding 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 just one piece of the puzzle for value investors.

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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JBTM currently has a forward P/E ratio of 16.61, while TT has a forward P/E of 32.92. We also note that JBTM has a PEG ratio of 1.44. 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. TT currently has a PEG ratio of 2.26.

Another notable valuation metric for JBTM is its P/B ratio of 1.59. 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, TT has a P/B of 12.53.

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

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

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