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

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Investors with an interest in Technology Services stocks have likely encountered both Vontier Corporation (VNT - Free Report) and Cellebrite DI Ltd. (CLBT - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.

Currently, Vontier Corporation has a Zacks Rank of #2 (Buy), while Cellebrite DI Ltd. has a Zacks Rank of #4 (Sell). 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 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.

VNT currently has a forward P/E ratio of 6.83, while CLBT has a forward P/E of 55.20. We also note that VNT has a PEG ratio of 1.12. 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. CLBT currently has a PEG ratio of 10.89.

Another notable valuation metric for VNT is its P/B ratio of 6.94. 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, CLBT has a P/B of 36.05.

These metrics, and several others, help VNT earn a Value grade of A, while CLBT has been given a Value grade of C.

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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