JCOM or NICE: Which Is the Better Value Stock Right Now?

NICE

Investors interested in stocks from the Internet - Software sector have probably already heard of j2 Global and 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.

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.

j2 Global and Nice are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JCOM 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.

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.

JCOM currently has a forward P/E ratio of 12.31, while NICE has a forward P/E of 27.75. We also note that JCOM has a PEG ratio of 1.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NICE currently has a PEG ratio of 2.73.

Another notable valuation metric for JCOM is its P/B ratio of 4. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NICE has a P/B of 4.35.

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

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

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