Back to top

Image: Bigstock

CXT or CXM: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Technology Services sector might want to consider either Crane NXT (CXT - Free Report) or Sprinkler (CXM - 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.

Both Crane NXT and Sprinkler have a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

CXT currently has a forward P/E ratio of 14.35, while CXM has a forward P/E of 65.19. We also note that CXT has a PEG ratio of 1.93. 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. CXM currently has a PEG ratio of 2.17.

Another notable valuation metric for CXT is its P/B ratio of 3.94. 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, CXM has a P/B of 6.33.

These metrics, and several others, help CXT earn a Value grade of B, while CXM has been given a Value grade of F.

Both CXT and CXM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CXT is the superior value option right now.


See More Zacks Research for These Tickers


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


Sprinklr, Inc. (CXM) - free report >>

Crane NXT, Co. (CXT) - free report >>

Published in