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VNT or PLTR: Which Is the Better Value Stock Right Now?

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Investors interested in Technology Services stocks are likely familiar with Vontier Corporation (VNT - Free Report) and Palantir Technologies Inc. (PLTR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 Palantir Technologies Inc. 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 only part of the picture for value investors.

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.

VNT currently has a forward P/E ratio of 7.19, while PLTR has a forward P/E of 67.04. We also note that VNT has a PEG ratio of 1.16. 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. PLTR currently has a PEG ratio of 2.17.

Another notable valuation metric for VNT is its P/B ratio of 6.82. 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, PLTR has a P/B of 8.75.

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

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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