SMGZY vs. CLMB: Which Stock Is the Better Value Option?

Investors interested in Technology Services stocks are likely familiar with Smiths Group PLC SMGZY and Climb Global Solutions CLMB. 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Smiths Group PLC has a Zacks Rank of #1 (Strong Buy), while Climb Global Solutions has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that SMGZY 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

SMGZY currently has a forward P/E ratio of 13.94, while CLMB has a forward P/E of 32.80. We also note that SMGZY has a PEG ratio of 1.21. 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. CLMB currently has a PEG ratio of 2.98.

Another notable valuation metric for SMGZY is its P/B ratio of 2.62. 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, CLMB has a P/B of 6.18.

Based on these metrics and many more, SMGZY holds a Value grade of B, while CLMB has a Value grade of C.

SMGZY sticks out from CLMB in both our Zacks Rank and Style Scores models, so value investors will likely feel that SMGZY is the better option right now.

To read this article on Zacks.com click here.