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DELL or WIX: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Computers - IT Services sector might want to consider either Dell Technologies (DELL - Free Report) or Wix.com (WIX - 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 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.

Dell Technologies has a Zacks Rank of #2 (Buy), while Wix.com has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DELL has an improving earnings outlook. However, value investors will care about much more than just this.

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.

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.

DELL currently has a forward P/E ratio of 10.32, while WIX has a forward P/E of 1,389.31. We also note that DELL has a PEG ratio of 0.86. 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. WIX currently has a PEG ratio of 59.45.

Another notable valuation metric for DELL is its P/B ratio of 9.73. 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, WIX has a P/B of 52.34.

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

DELL stands above WIX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DELL is the superior value option right now.


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