Investors with an interest in Technology Services stocks have likely encountered both V2X (VVX) and Symbotic Inc. (SYM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, V2X has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VVX has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
VVX currently has a forward P/E ratio of 11.61, while SYM has a forward P/E of 114.48. We also note that VVX has a PEG ratio of 0.59. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SYM currently has a PEG ratio of 3.82.
Another notable valuation metric for VVX is its P/B ratio of 1.91. 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 34.32.
These are just a few of the metrics contributing to VVX's Value grade of A and SYM's Value grade of F.
VVX has seen stronger estimate revision activity and sports more attractive valuation metrics than SYM, so it seems like value investors will conclude that VVX is the superior option right now.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
V2X, Inc. (VVX): Free Stock Analysis Report Symbotic Inc. (SYM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
