VRNT or CSOD: Which Is the Better Value Stock Right Now?

VRNT

Investors looking for stocks in the Computer - Software sector might want to consider either Verint Systems (VRNT - Free Report) or Cornerstone OnDemand . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Verint Systems and Cornerstone OnDemand are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. Investors should feel comfortable knowing that VRNT likely has seen a stronger improvement to its earnings outlook than CSOD has recently. But this is just one factor that value investors are interested in.

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.

VRNT currently has a forward P/E ratio of 14.90, while CSOD has a forward P/E of 36.97. We also note that VRNT has a PEG ratio of 1.06. 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. CSOD currently has a PEG ratio of 2.15.

Another notable valuation metric for VRNT is its P/B ratio of 2.71. 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, CSOD has a P/B of 10.28.

These are just a few of the metrics contributing to VRNT's Value grade of B and CSOD's Value grade of C.

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

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