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VNT vs. P: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and Everpure (P - 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.

Currently, Vontier Corporation has a Zacks Rank of #2 (Buy), while Everpure has a Zacks Rank of #3 (Hold). This means that VNT'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 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

VNT currently has a forward P/E ratio of 9.01, while P has a forward P/E of 45.16. We also note that VNT has a PEG ratio of 1.08. 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 1.43.

Another notable valuation metric for VNT is its P/B ratio of 3.7. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, P has a P/B of 27.01.

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

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

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