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

Zacks
04-08

Investors looking for stocks in the Technology Services sector might want to consider either Coherent (COHR) or Symbotic Inc. (SYM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Coherent and Symbotic Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that COHR likely has seen a stronger improvement to its earnings outlook than SYM has recently. However, value investors will care about much more than just this.

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.

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.

COHR currently has a forward P/E ratio of 15.18, while SYM has a forward P/E of 71.39. We also note that COHR has a PEG ratio of 0.33. 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 2.38.

Another notable valuation metric for COHR is its P/B ratio of 1.48. 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 27.68.

These metrics, and several others, help COHR earn a Value grade of B, while SYM has been given a Value grade of F.

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

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Coherent Corp. (COHR) : Free Stock Analysis Report

Symbotic Inc. (SYM) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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