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FUTU or SYM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Technology Services stocks have likely encountered both Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Symbotic Inc. (SYM - Free Report) . 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Futu Holdings Limited Sponsored ADR and Symbotic Inc. are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that FUTU 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 also try to analyze a wide range of traditional figures and metrics to help determine whether 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.

FUTU currently has a forward P/E ratio of 21.10, while SYM has a forward P/E of 213.58. We also note that FUTU has a PEG ratio of 0.77. 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. SYM currently has a PEG ratio of 7.12.

Another notable valuation metric for FUTU is its P/B ratio of 5.71. 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 68.19.

These are just a few of the metrics contributing to FUTU's Value grade of B and SYM's Value grade of F.

FUTU 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 FUTU is likely the superior value option right now.


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