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CRTO vs. QUOT: Which Stock Should Value Investors Buy Now?

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Investors interested in Internet - Software and Services stocks are likely familiar with Criteo S.A. (CRTO - Free Report) and Quotient Technology (QUOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Criteo S.A. has a Zacks Rank of #2 (Buy), while Quotient Technology has a Zacks Rank of #5 (Strong Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CRTO 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.

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.

CRTO currently has a forward P/E ratio of 9.69, while QUOT has a forward P/E of 149.75. We also note that CRTO has a PEG ratio of 1.94. 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. QUOT currently has a PEG ratio of 11.52.

Another notable valuation metric for CRTO is its P/B ratio of 1.54. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, QUOT has a P/B of 2.95.

Based on these metrics and many more, CRTO holds a Value grade of A, while QUOT has a Value grade of F.

CRTO sticks out from QUOT in both our Zacks Rank and Style Scores models, so value investors will likely feel that CRTO is the better option right now.


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Criteo S.A. (CRTO) - free report >>

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