CRTO vs. QUOT: Which Stock Is the Better Value Option?

CRTO QUOT

Investors looking for stocks in the Internet - Software and Services sector might want to consider either Criteo S.A. (CRTO - Free Report) or Quotient Technology (QUOT - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Criteo S.A. has a Zacks Rank of #1 (Strong Buy), while Quotient Technology has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CRTO has an improving earnings outlook. 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.

CRTO currently has a forward P/E ratio of 7.79, while QUOT has a forward P/E of 120.80. We also note that CRTO has a PEG ratio of 1.56. 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. QUOT currently has a PEG ratio of 8.33.

Another notable valuation metric for CRTO is its P/B ratio of 1.25. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, QUOT has a P/B of 2.84.

These metrics, and several others, help CRTO earn a Value grade of A, while QUOT has been given a Value grade of F.

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

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