Back to top

Image: Bigstock

MPTI or ALFVY: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors with an interest in Engineering - R and D Services stocks have likely encountered both M-tron Industries, Inc. (MPTI - Free Report) and Alfa Laval AB Unsponsored ADR (ALFVY - 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.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. 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 M-tron Industries, Inc. and Alfa Laval AB Unsponsored ADR have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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 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.

MPTI currently has a forward P/E ratio of 15.70, while ALFVY has a forward P/E of 25.18. We also note that MPTI has a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALFVY currently has a PEG ratio of 2.27.

Another notable valuation metric for MPTI is its P/B ratio of 4.20. 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, ALFVY has a P/B of 4.79.

Based on these metrics and many more, MPTI holds a Value grade of B, while ALFVY has a Value grade of D.

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


See More Zacks Research for These Tickers


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


Alfa Laval AB Unsponsored ADR (ALFVY) - free report >>

M-tron Industries, Inc. (MPTI) - free report >>

Published in