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SNX vs. TYL: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Business - Software Services sector have probably already heard of Synnex (SNX - Free Report) and Tyler Technologies (TYL - 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.
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 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.
Synnex and Tyler Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than TYL has recently. But this is only part of the picture for value investors.
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.
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.
SNX currently has a forward P/E ratio of 11.54, while TYL has a forward P/E of 72.89. We also note that SNX has a PEG ratio of 1.23. 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. TYL currently has a PEG ratio of 4.86.
Another notable valuation metric for SNX is its P/B ratio of 1.78. 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, TYL has a P/B of 8.69.
These are just a few of the metrics contributing to SNX's Value grade of A and TYL's Value grade of D.
SNX has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that SNX is the superior option right now.
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SNX vs. TYL: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Business - Software Services sector have probably already heard of Synnex (SNX - Free Report) and Tyler Technologies (TYL - 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.
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 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.
Synnex and Tyler Technologies are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than TYL has recently. But this is only part of the picture for value investors.
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.
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.
SNX currently has a forward P/E ratio of 11.54, while TYL has a forward P/E of 72.89. We also note that SNX has a PEG ratio of 1.23. 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. TYL currently has a PEG ratio of 4.86.
Another notable valuation metric for SNX is its P/B ratio of 1.78. 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, TYL has a P/B of 8.69.
These are just a few of the metrics contributing to SNX's Value grade of A and TYL's Value grade of D.
SNX has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that SNX is the superior option right now.