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Investors with an interest in Technology Services stocks have likely encountered both JBT Marel (JBTM) and Palantir Technologies Inc. (PLTR). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both JBT Marel and Palantir Technologies Inc. have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle 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.
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.
JBTM currently has a forward P/E ratio of 22.77, while PLTR has a forward P/E of 157.26. We also note that JBTM has a PEG ratio of 2.65. 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. PLTR currently has a PEG ratio of 5.01.
Another notable valuation metric for JBTM is its P/B ratio of 2.72. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PLTR has a P/B of 38.99.
These are just a few of the metrics contributing to JBTM's Value grade of B and PLTR's Value grade of F.
Both JBTM and PLTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JBTM is the superior value option right now.
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JBT Marel Corporation (JBTM) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).