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NVEE vs. SYM: Which Stock Is the Better Value Option?

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Investors with an interest in Technology Services stocks have likely encountered both NV5 Global (NVEE - Free Report) and Symbotic Inc. (SYM - 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.

NV5 Global has a Zacks Rank of #2 (Buy), while Symbotic Inc. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that NVEE likely has seen a stronger improvement to its earnings outlook than SYM has recently. 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.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

NVEE currently has a forward P/E ratio of 13.36, while SYM has a forward P/E of 87.14. We also note that NVEE has a PEG ratio of 2.53. 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 2.90.

Another notable valuation metric for NVEE is its P/B ratio of 1.36. 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, SYM has a P/B of 31.84.

These metrics, and several others, help NVEE earn a Value grade of A, while SYM has been given a Value grade of D.

NVEE stands above SYM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that NVEE is the superior value option right now.


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