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CHKP vs. CYBR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Security sector have probably already heard of Check Point Software (CHKP - Free Report) and CyberArk (CYBR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Check Point Software has a Zacks Rank of #2 (Buy), while CyberArk has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CHKP likely has seen a stronger improvement to its earnings outlook than CYBR has recently. 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.
CHKP currently has a forward P/E ratio of 19.06, while CYBR has a forward P/E of 63.42. We also note that CHKP has a PEG ratio of 2.60. 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. CYBR currently has a PEG ratio of 5.18.
Another notable valuation metric for CHKP is its P/B ratio of 5.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CYBR has a P/B of 6.69.
Based on these metrics and many more, CHKP holds a Value grade of B, while CYBR has a Value grade of D.
CHKP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CHKP is likely the superior value option right now.
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CHKP vs. CYBR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Security sector have probably already heard of Check Point Software (CHKP - Free Report) and CyberArk (CYBR - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Check Point Software has a Zacks Rank of #2 (Buy), while CyberArk has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CHKP likely has seen a stronger improvement to its earnings outlook than CYBR has recently. 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.
CHKP currently has a forward P/E ratio of 19.06, while CYBR has a forward P/E of 63.42. We also note that CHKP has a PEG ratio of 2.60. 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. CYBR currently has a PEG ratio of 5.18.
Another notable valuation metric for CHKP is its P/B ratio of 5.27. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CYBR has a P/B of 6.69.
Based on these metrics and many more, CHKP holds a Value grade of B, while CYBR has a Value grade of D.
CHKP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CHKP is likely the superior value option right now.