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KNMCY or PEGA: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Computer - Software sector have probably already heard of Konami Corp. and Pegasystems (PEGA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Currently, Konami Corp. has a Zacks Rank of #2 (Buy), while Pegasystems 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 KNMCY 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 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
KNMCY currently has a forward P/E ratio of 19.92, while PEGA has a forward P/E of 50.56. We also note that KNMCY has a PEG ratio of 0.80. 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. PEGA currently has a PEG ratio of 6.32.
Another notable valuation metric for KNMCY is its P/B ratio of 2.99. 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, PEGA has a P/B of 6.96.
These metrics, and several others, help KNMCY earn a Value grade of B, while PEGA has been given a Value grade of D.
KNMCY stands above PEGA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNMCY is the superior value option right now.
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KNMCY or PEGA: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Computer - Software sector have probably already heard of Konami Corp. and Pegasystems (PEGA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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.
Currently, Konami Corp. has a Zacks Rank of #2 (Buy), while Pegasystems 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 KNMCY 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 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 Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
KNMCY currently has a forward P/E ratio of 19.92, while PEGA has a forward P/E of 50.56. We also note that KNMCY has a PEG ratio of 0.80. 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. PEGA currently has a PEG ratio of 6.32.
Another notable valuation metric for KNMCY is its P/B ratio of 2.99. 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, PEGA has a P/B of 6.96.
These metrics, and several others, help KNMCY earn a Value grade of B, while PEGA has been given a Value grade of D.
KNMCY stands above PEGA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that KNMCY is the superior value option right now.