雅虎香港財經 VNT vs. VLTO: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Technology Services sector might want to consider either Vontier Corporation (VNT) or Veralto (VLTO). But which of these two stocks presents investors with the better value opportunity right now? 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.
Right now, Vontier Corporation is sporting a Zacks Rank of #2 (Buy), while Veralto 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. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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 11, while VLTO has a forward P/E of 24.23. We also note that VNT has a PEG ratio of 1.96. 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. VLTO currently has a PEG ratio of 4.69.
Another notable valuation metric for VNT is its P/B ratio of 6.97. 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, VLTO has a P/B of 18.18.
These are just a few of the metrics contributing to VNT's Value grade of A and VLTO's Value grade of C.
VNT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VNT is likely the superior value option right now.
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Vontier Corporation (VNT) : Free Stock Analysis Report
Veralto Corporation (VLTO) : Free Stock Analysis Report
