Investors with an interest in Internet - Software stocks have likely encountered both Covetrus and Sogou . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Covetrus has a Zacks Rank of #2 (Buy), while Sogou has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CVET likely has seen a stronger improvement to its earnings outlook than SOGO has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
CVET currently has a forward P/E ratio of 39.79, while SOGO has a forward P/E of 156.36. We also note that CVET has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SOGO currently has a PEG ratio of 23.76.
Another notable valuation metric for CVET is its P/B ratio of 2. 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, SOGO has a P/B of 3.33.
These metrics, and several others, help CVET earn a Value grade of B, while SOGO has been given a Value grade of C.
CVET 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 CVET is likely the superior value option right now.
Image: Bigstock
CVET vs. SOGO: Which Stock Is the Better Value Option?
Investors with an interest in Internet - Software stocks have likely encountered both Covetrus and Sogou . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Covetrus has a Zacks Rank of #2 (Buy), while Sogou has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CVET likely has seen a stronger improvement to its earnings outlook than SOGO has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
CVET currently has a forward P/E ratio of 39.79, while SOGO has a forward P/E of 156.36. We also note that CVET has a PEG ratio of 1.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SOGO currently has a PEG ratio of 23.76.
Another notable valuation metric for CVET is its P/B ratio of 2. 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, SOGO has a P/B of 3.33.
These metrics, and several others, help CVET earn a Value grade of B, while SOGO has been given a Value grade of C.
CVET 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 CVET is likely the superior value option right now.