VNT vs. SYM: Which Stock Should Value Investors Buy Now?

Investors interested in Technology Services stocks are likely familiar with Vontier Corporation (VNT) and Symbotic Inc. (SYM). 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 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.

Vontier Corporation has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VNT has an improving earnings outlook. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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 10.32, while SYM has a forward P/E of 104.42. We also note that VNT has a PEG ratio of 1.35. 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. SYM currently has a PEG ratio of 3.48.

Another notable valuation metric for VNT is its P/B ratio of 3.98. 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, SYM has a P/B of 31.31.

These are just a few of the metrics contributing to VNT's Value grade of A and SYM's Value grade of D.

VNT sticks out from SYM in both our Zacks Rank and Style Scores models, so value investors will likely feel that VNT is the better option right now.

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Vontier Corporation (VNT): Free Stock Analysis Report

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

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