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SCSC or SYM: Which Is the Better Value Stock Right Now?
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Investors interested in Technology Services stocks are likely familiar with ScanSource (SCSC - Free Report) and Symbotic Inc. (SYM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both ScanSource and Symbotic Inc. are holding a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
SCSC currently has a forward P/E ratio of 12.36, while SYM has a forward P/E of 50.87. We also note that SCSC has a PEG ratio of 0.82. 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. SYM currently has a PEG ratio of 1.70.
Another notable valuation metric for SCSC is its P/B ratio of 1.35. 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, SYM has a P/B of 20.18.
These metrics, and several others, help SCSC earn a Value grade of A, while SYM has been given a Value grade of D.
Both SCSC and SYM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SCSC is the superior value option right now.
Image: Bigstock
SCSC or SYM: Which Is the Better Value Stock Right Now?
Investors interested in Technology Services stocks are likely familiar with ScanSource (SCSC - Free Report) and Symbotic Inc. (SYM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both ScanSource and Symbotic Inc. are holding a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
SCSC currently has a forward P/E ratio of 12.36, while SYM has a forward P/E of 50.87. We also note that SCSC has a PEG ratio of 0.82. 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. SYM currently has a PEG ratio of 1.70.
Another notable valuation metric for SCSC is its P/B ratio of 1.35. 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, SYM has a P/B of 20.18.
These metrics, and several others, help SCSC earn a Value grade of A, while SYM has been given a Value grade of D.
Both SCSC and SYM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SCSC is the superior value option right now.