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DHX or SSTK: Which Is the Better Value Stock Right Now?

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Investors with an interest in Internet - Content stocks have likely encountered both DHI Group (DHX - Free Report) and Shutterstock (SSTK - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, DHI Group has a Zacks Rank of #2 (Buy), while Shutterstock has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DHX has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

DHX currently has a forward P/E ratio of 15.61, while SSTK has a forward P/E of 26.72. We also note that DHX has a PEG ratio of 0.78. 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. SSTK currently has a PEG ratio of 1.07.

Another notable valuation metric for DHX is its P/B ratio of 1.47. 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, SSTK has a P/B of 4.73.

These metrics, and several others, help DHX earn a Value grade of A, while SSTK has been given a Value grade of C.

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


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