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.
KNMCY or PEGA: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Computer - Software stocks are likely familiar with 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.
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.
Konami Corp. and Pegasystems are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. 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 are also interested in a number of tried-and-true valuation metrics that help show when 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.
KNMCY currently has a forward P/E ratio of 16.02, while PEGA has a forward P/E of 73.30. We also note that KNMCY has a PEG ratio of 0.64. 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. PEGA currently has a PEG ratio of 9.16.
Another notable valuation metric for KNMCY is its P/B ratio of 2.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PEGA has a P/B of 6.64.
These are just a few of the metrics contributing to KNMCY's Value grade of B and PEGA's Value grade of F.
KNMCY has seen stronger estimate revision activity and sports more attractive valuation metrics than PEGA, so it seems like value investors will conclude that KNMCY is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
KNMCY or PEGA: Which Is the Better Value Stock Right Now?
Investors interested in Computer - Software stocks are likely familiar with 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.
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.
Konami Corp. and Pegasystems are sporting Zacks Ranks of #2 (Buy) and #5 (Strong Sell), respectively, right now. 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 are also interested in a number of tried-and-true valuation metrics that help show when 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.
KNMCY currently has a forward P/E ratio of 16.02, while PEGA has a forward P/E of 73.30. We also note that KNMCY has a PEG ratio of 0.64. 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. PEGA currently has a PEG ratio of 9.16.
Another notable valuation metric for KNMCY is its P/B ratio of 2.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PEGA has a P/B of 6.64.
These are just a few of the metrics contributing to KNMCY's Value grade of B and PEGA's Value grade of F.
KNMCY has seen stronger estimate revision activity and sports more attractive valuation metrics than PEGA, so it seems like value investors will conclude that KNMCY is the superior option right now.