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RKT vs. SSTI: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Technology Services sector have probably already heard of Rocket Companies (RKT - Free Report) and ShotSpotter (SSTI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Rocket Companies is sporting a Zacks Rank of #1 (Strong Buy), while ShotSpotter has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RKT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
RKT currently has a forward P/E ratio of 10.90, while SSTI has a forward P/E of 274.55. We also note that RKT has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SSTI currently has a PEG ratio of 13.73.
Another notable valuation metric for RKT is its P/B ratio of 6.50. 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, SSTI has a P/B of 14.80.
These are just a few of the metrics contributing to RKT's Value grade of B and SSTI's Value grade of D.
RKT stands above SSTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RKT is the superior value option right now.
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RKT vs. SSTI: Which Stock Is the Better Value Option?
Investors interested in stocks from the Technology Services sector have probably already heard of Rocket Companies (RKT - Free Report) and ShotSpotter (SSTI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Rocket Companies is sporting a Zacks Rank of #1 (Strong Buy), while ShotSpotter has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that RKT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle 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.
RKT currently has a forward P/E ratio of 10.90, while SSTI has a forward P/E of 274.55. We also note that RKT has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SSTI currently has a PEG ratio of 13.73.
Another notable valuation metric for RKT is its P/B ratio of 6.50. 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, SSTI has a P/B of 14.80.
These are just a few of the metrics contributing to RKT's Value grade of B and SSTI's Value grade of D.
RKT stands above SSTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that RKT is the superior value option right now.