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YMM or NPO: 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 Full Truck Alliance Co. Ltd. Sponsored ADR (YMM - Free Report) or Enpro (NPO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 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.

Right now, Full Truck Alliance Co. Ltd. Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Enpro has a Zacks Rank of #3 (Hold). This means that YMM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

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.

YMM currently has a forward P/E ratio of 12.14, while NPO has a forward P/E of 29.61. We also note that YMM has a PEG ratio of 0.77. 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. NPO currently has a PEG ratio of 1.97.

Another notable valuation metric for YMM is its P/B ratio of 1.53. 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, NPO has a P/B of 3.79.

These metrics, and several others, help YMM earn a Value grade of B, while NPO has been given a Value grade of D.

YMM stands above NPO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that YMM is the superior value option right now.

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