VNT or SYM: Which Is the Better Value Stock Right Now?

Investors looking for stocks in the Technology Services sector might want to consider either Vontier Corporation (VNT) or Symbotic Inc. (SYM). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 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 has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold) right now. This means that VNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.

VNT currently has a forward P/E ratio of 8.95, while SYM has a forward P/E of 70.86. We also note that VNT has a PEG ratio of 1.07. 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. SYM currently has a PEG ratio of 2.36.

Another notable valuation metric for VNT is its P/B ratio of 3.67. 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, SYM has a P/B of 21.89.

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

VNT sticks out from SYM in both our Zacks Rank and Style Scores models, so value investors will likely feel that VNT is the better option right now.

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This article originally published on Zacks Investment Research (zacks.com).

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