Investors with an interest in Security and Safety Services stocks have likely encountered both Johnson Controls (JCI) and NortonLifeLock (NLOK). 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Both Johnson Controls and NortonLifeLock have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
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.
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.
JCI currently has a forward P/E ratio of 17.75, while NLOK has a forward P/E of 20.18. We also note that JCI has a PEG ratio of 2.22. 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. NLOK currently has a PEG ratio of 3.36.
Another notable valuation metric for JCI is its P/B ratio of 1.51. 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, NLOK has a P/B of 1,330.45.
Based on these metrics and many more, JCI holds a Value grade of B, while NLOK has a Value grade of F.
Both JCI and NLOK are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JCI is the superior value option right now.
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Johnson Controls International plc (JCI) : Free Stock Analysis Report
NortonLifeLock Inc. (NLOK) : Free Stock Analysis Report
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