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MEET vs. ATTU: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Internet - Software sector might want to consider either Meet Group or Attunity . But which of these two companies is the best option for those looking for undervalued stocks? 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.

Currently, both Meet Group and Attunity are holding a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

MEET currently has a forward P/E ratio of 13.80, while ATTU has a forward P/E of 54.80. We also note that MEET has a PEG ratio of 0.69. 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. ATTU currently has a PEG ratio of 2.74.

Another notable valuation metric for MEET is its P/B ratio of 1.33. 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, ATTU has a P/B of 4.08.

These are just a few of the metrics contributing to MEET's Value grade of B and ATTU's Value grade of D.

Both MEET and ATTU are impressive stocks with a solid earnings outlook, but based on these valuation figures, we feel that MEET is the superior value option right now.