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Investors interested in Technology Services stocks are likely familiar with Alithya Group (ALYAF) and JBT Marel (JBTM). 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Alithya Group and JBT Marel are sporting Zacks Ranks of #1 (Strong Buy) and #2 (Buy), respectively, right now. Investors should feel comfortable knowing that ALYAF likely has seen a stronger improvement to its earnings outlook than JBTM has recently. However, value investors will care about much more than just this.
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.
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.
ALYAF currently has a forward P/E ratio of 10.24, while JBTM has a forward P/E of 16.48. We also note that ALYAF has a PEG ratio of 0.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JBTM currently has a PEG ratio of 2.01.
Another notable valuation metric for ALYAF is its P/B ratio of 0.93. 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, JBTM has a P/B of 1.97.
Based on these metrics and many more, ALYAF holds a Value grade of A, while JBTM has a Value grade of C.
ALYAF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ALYAF is likely the superior value option right now.
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Alithya Group Inc. (ALYAF) : Free Stock Analysis Report
JBT Marel Corporation (JBTM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).