Back to top

Image: Bigstock

VNT vs. SSTI: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with Vontier Corporation (VNT - Free Report) and ShotSpotter (SSTI - Free Report) . 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 and ShotSpotter are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, 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 factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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 9.68, while SSTI has a forward P/E of 170.06. We also note that VNT has a PEG ratio of 3.41. 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. SSTI currently has a PEG ratio of 5.67.

Another notable valuation metric for VNT is its P/B ratio of 7.42. 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, SSTI has a P/B of 7.45.

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

VNT stands above SSTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VNT is the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


SoundThinking, Inc. (SSTI) - free report >>

Vontier Corporation (VNT) - free report >>

Published in