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VNT or CLBT: 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 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, Vontier Corporation is sporting a Zacks Rank of #2 (Buy), while Cellebrite DI Ltd. has a Zacks Rank of #3 (Hold). 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 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 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 9.45, while CLBT has a forward P/E of 30.78. We also note that VNT has a PEG ratio of 4.16. 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. CLBT currently has a PEG ratio of 11.84.

Another notable valuation metric for VNT is its P/B ratio of 7.11. 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, CLBT has a P/B of 15.28.

Based on these metrics and many more, VNT holds a Value grade of A, while CLBT has 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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