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JCOM vs. CRWD: Which Stock Should Value Investors Buy Now?

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Investors interested in Internet - Software stocks are likely familiar with j2 Global and CrowdStrike Holdings (CRWD - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both j2 Global and CrowdStrike Holdings are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

JCOM currently has a forward P/E ratio of 12.43, while CRWD has a forward P/E of 931.43. We also note that JCOM has a PEG ratio of 1.55. 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. CRWD currently has a PEG ratio of 37.26.

Another notable valuation metric for JCOM is its P/B ratio of 3.98. 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, CRWD has a P/B of 55.33.

These are just a few of the metrics contributing to JCOM's Value grade of A and CRWD's Value grade of F.

Both JCOM and CRWD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JCOM is the superior value option right now.


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