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

Investors with an interest in Technology Services stocks have likely encountered both Full Truck Alliance Co. Ltd. Sponsored ADR (YMM) and 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.

Full Truck Alliance Co. Ltd. Sponsored ADR and Symbotic Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that YMM has an improving earnings outlook. However, value investors will care about much more than just this.

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.

YMM currently has a forward P/E ratio of 12.04, while SYM has a forward P/E of 85.91. We also note that YMM has a PEG ratio of 0.73. 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. SYM currently has a PEG ratio of 2.86.

Another notable valuation metric for YMM is its P/B ratio of 1.5. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SYM has a P/B of 25.06.

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

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

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

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