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MIXT vs. WDAY: Which Stock Should Value Investors Buy Now?

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Investors interested in Internet - Software stocks are likely familiar with MiX Telematics Limited and Workday (WDAY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

MiX Telematics Limited has a Zacks Rank of #2 (Buy), while Workday has a Zacks Rank of #3 (Hold) right now. This means that MIXT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture 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.

MIXT currently has a forward P/E ratio of 23.67, while WDAY has a forward P/E of 134.68. We also note that MIXT has a PEG ratio of 0.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. WDAY currently has a PEG ratio of 4.32.

Another notable valuation metric for MIXT is its P/B ratio of 2.80. 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, WDAY has a P/B of 20.22.

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

MIXT stands above WDAY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that MIXT is the superior value option right now.


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