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VNT vs. PAY: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and Paymentus (PAY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Vontier Corporation has a Zacks Rank of #1 (Strong Buy), while Paymentus has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 7.67, while PAY has a forward P/E of 1,145.50. We also note that VNT has a PEG ratio of 1.55. 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. PAY currently has a PEG ratio of 89.35.
Another notable valuation metric for VNT is its P/B ratio of 7.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PAY has a P/B of 7.26.
These are just a few of the metrics contributing to VNT's Value grade of B and PAY's Value grade of D.
VNT has seen stronger estimate revision activity and sports more attractive valuation metrics than PAY, so it seems like value investors will conclude that VNT is the superior option right now.
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VNT vs. PAY: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Vontier Corporation (VNT - Free Report) and Paymentus (PAY - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Vontier Corporation has a Zacks Rank of #1 (Strong Buy), while Paymentus has a Zacks Rank of #4 (Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VNT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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 7.67, while PAY has a forward P/E of 1,145.50. We also note that VNT has a PEG ratio of 1.55. 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. PAY currently has a PEG ratio of 89.35.
Another notable valuation metric for VNT is its P/B ratio of 7.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PAY has a P/B of 7.26.
These are just a few of the metrics contributing to VNT's Value grade of B and PAY's Value grade of D.
VNT has seen stronger estimate revision activity and sports more attractive valuation metrics than PAY, so it seems like value investors will conclude that VNT is the superior option right now.