We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VRNT vs. CSOD: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors looking for stocks in the Computer - Software sector might want to consider either Verint Systems (VRNT - Free Report) or Cornerstone OnDemand . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Verint Systems has a Zacks Rank of #2 (Buy), while Cornerstone OnDemand has a Zacks Rank of #4 (Sell) right now. This means that VRNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
VRNT currently has a forward P/E ratio of 15.44, while CSOD has a forward P/E of 36.05. We also note that VRNT has a PEG ratio of 1.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CSOD currently has a PEG ratio of 2.09.
Another notable valuation metric for VRNT is its P/B ratio of 2.80. 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, CSOD has a P/B of 10.02.
These metrics, and several others, help VRNT earn a Value grade of B, while CSOD has been given a Value grade of C.
VRNT sticks out from CSOD in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRNT is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
VRNT vs. CSOD: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Computer - Software sector might want to consider either Verint Systems (VRNT - Free Report) or Cornerstone OnDemand . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Verint Systems has a Zacks Rank of #2 (Buy), while Cornerstone OnDemand has a Zacks Rank of #4 (Sell) right now. This means that VRNT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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.
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.
VRNT currently has a forward P/E ratio of 15.44, while CSOD has a forward P/E of 36.05. We also note that VRNT has a PEG ratio of 1.10. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CSOD currently has a PEG ratio of 2.09.
Another notable valuation metric for VRNT is its P/B ratio of 2.80. 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, CSOD has a P/B of 10.02.
These metrics, and several others, help VRNT earn a Value grade of B, while CSOD has been given a Value grade of C.
VRNT sticks out from CSOD in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRNT is the better option right now.