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VNT or P: 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 Vontier Corporation (VNT - Free Report) or Everpure (P - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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.

Vontier Corporation has a Zacks Rank of #2 (Buy), while Everpure has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. 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.

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.

VNT currently has a forward P/E ratio of 10.28, while P has a forward P/E of 35.46. We also note that VNT has a PEG ratio of 1.31. 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. P currently has a PEG ratio of 1.84.

Another notable valuation metric for VNT is its P/B ratio of 4.14. 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, P has a P/B of 20.09.

These metrics, and several others, help VNT earn a Value grade of A, while P has been given a Value grade of F.

VNT sticks out from P in both our Zacks Rank and Style Scores models, so value investors will likely feel that VNT is the better option right now.

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