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

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Investors looking for stocks in the Engineering - R and D Services sector might want to consider either M-tron Industries, Inc. (MPTI - Free Report) or Alfa Laval AB Unsponsored ADR (ALFVY - Free Report) . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

M-tron Industries, Inc. and Alfa Laval AB Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that MPTI'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 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.

MPTI currently has a forward P/E ratio of 15.87, while ALFVY has a forward P/E of 26.56. We also note that MPTI has a PEG ratio of 0.69. 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. ALFVY currently has a PEG ratio of 2.39.

Another notable valuation metric for MPTI is its P/B ratio of 4.24. 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, ALFVY has a P/B of 5.

These metrics, and several others, help MPTI earn a Value grade of B, while ALFVY has been given a Value grade of D.

MPTI has seen stronger estimate revision activity and sports more attractive valuation metrics than ALFVY, so it seems like value investors will conclude that MPTI is the superior option right now.


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

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