Back to top

Image: Bigstock

MEET vs. NICE: Which Stock Is the Better Value Option?

Read MoreHide Full Article

Investors looking for stocks in the Internet - Software sector might want to consider either Meet Group or Nice (NICE - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Meet Group has a Zacks Rank of #1 (Strong Buy), while Nice has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that MEET likely has seen a stronger improvement to its earnings outlook than NICE has recently. 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 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.

MEET currently has a forward P/E ratio of 7.05, while NICE has a forward P/E of 25.99. We also note that MEET has a PEG ratio of 0.35. 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. NICE currently has a PEG ratio of 2.56.

Another notable valuation metric for MEET is its P/B ratio of 1.22. 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, NICE has a P/B of 4.

These metrics, and several others, help MEET earn a Value grade of B, while NICE has been given a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nice (NICE) - free report >>

Published in