Back to top

Image: Bigstock

SMGZY or JAMF: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC (SMGZY - Free Report) and Jamf Holding (JAMF - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Smiths Group PLC and Jamf Holding are holding a Zacks Rank of # 2 (Buy). 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. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

SMGZY currently has a forward P/E ratio of 16.36, while JAMF has a forward P/E of 63. We also note that SMGZY has a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. JAMF currently has a PEG ratio of 1.89.

Another notable valuation metric for SMGZY is its P/B ratio of 2.58. 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, JAMF has a P/B of 3.29.

Based on these metrics and many more, SMGZY holds a Value grade of A, while JAMF has a Value grade of D.

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


See More Zacks Research for These Tickers


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


Smiths Group PLC (SMGZY) - free report >>

Jamf Holding Corp. (JAMF) - free report >>

Published in