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NTTYY vs. QXO: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Technology Services sector have probably already heard of NTT (NTTYY - Free Report) and QXO, Inc. (QXO - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

NTT and QXO, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #5 (Strong Sell), respectively, right now. Investors should feel comfortable knowing that NTTYY likely has seen a stronger improvement to its earnings outlook than QXO has recently. But this is just one piece of the puzzle 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.

NTTYY currently has a forward P/E ratio of 11.95, while QXO has a forward P/E of 78.21. We also note that NTTYY has a PEG ratio of 3.79. 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. QXO currently has a PEG ratio of 3.91.

Another notable valuation metric for NTTYY is its P/B ratio of 1.1. 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, QXO has a P/B of 1.21.

These are just a few of the metrics contributing to NTTYY's Value grade of A and QXO's Value grade of D.

NTTYY has seen stronger estimate revision activity and sports more attractive valuation metrics than QXO, so it seems like value investors will conclude that NTTYY is the superior option right now.

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