Investors with an interest in Technology Services stocks have likely encountered both SPX Technologies (SPXC) and Palantir Technologies Inc. (PLTR). But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both SPX Technologies and Palantir Technologies Inc. are sporting a Zacks Rank of # 2 (Buy). 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 only part of the picture for value investors.

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.

SPXC currently has a forward P/E ratio of 22.37, while PLTR has a forward P/E of 149. We also note that SPXC has a PEG ratio of 1.24. 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. PLTR currently has a PEG ratio of 4.75.

Another notable valuation metric for SPXC is its P/B ratio of 4.61. 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, PLTR has a P/B of 36.94.

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

Both SPXC and PLTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that SPXC 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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