SNX vs. HXGBY: Which Stock Is the Better Value Option?

Investors with an interest in Computers - IT Services stocks have likely encountered both TD SYNNEX (SNX) and Hexagon AB Unsponsored ADR (HXGBY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, TD SYNNEX is sporting a Zacks Rank of #1 (Strong Buy), while Hexagon AB Unsponsored ADR has a Zacks Rank of #3 (Hold). This means that SNX'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 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.

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.

SNX currently has a forward P/E ratio of 11.90, while HXGBY has a forward P/E of 19.00. We also note that SNX has a PEG ratio of 0.94. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HXGBY currently has a PEG ratio of 2.38.

Another notable valuation metric for SNX is its P/B ratio of 1.77. 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, HXGBY has a P/B of 2.2.

Based on these metrics and many more, SNX holds a Value grade of B, while HXGBY has a Value grade of C.

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

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TD SYNNEX Corporation (SNX): Free Stock Analysis Report

Hexagon AB Unsponsored ADR (HXGBY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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