Yahoo Finance SPXC vs. PLTR: Which Stock Is the Better Value Option?
Investors with an interest in Technology Services stocks have likely encountered both SPX Technologies (SPXC) and Palantir Technologies Inc. (PLTR). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
SPX Technologies and Palantir Technologies Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SPXC is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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 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.
SPXC currently has a forward P/E ratio of 24.46, while PLTR has a forward P/E of 189.54. We also note that SPXC has a PEG ratio of 1.36. 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. PLTR currently has a PEG ratio of 6.72.
Another notable valuation metric for SPXC is its P/B ratio of 2.98. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, PLTR has a P/B of 7.27.
These metrics, and several others, help SPXC earn a Value grade of B, while PLTR has been given a Value grade of D.
SPXC stands above PLTR thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SPXC is the superior value option right now.
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