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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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Synnex is sporting a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than TYL has recently. But this is just one factor that value investors are interested in.
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 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 13.70, while TYL has a forward P/E of 73.63. We also note that SNX has a PEG ratio of 1.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TYL currently has a PEG ratio of 4.91.
Another notable valuation metric for SNX is its P/B ratio of 2.64. 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, TYL has a P/B of 8.54.
Based on these metrics and many more, SNX holds a Value grade of A, while TYL has a Value grade of F.
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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Synnex is sporting a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #5 (Strong Sell). Investors should feel comfortable knowing that SNX likely has seen a stronger improvement to its earnings outlook than TYL has recently. But this is just one factor that value investors are interested in.
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 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 13.70, while TYL has a forward P/E of 73.63. We also note that SNX has a PEG ratio of 1.46. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TYL currently has a PEG ratio of 4.91.
Another notable valuation metric for SNX is its P/B ratio of 2.64. 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, TYL has a P/B of 8.54.
Based on these metrics and many more, SNX holds a Value grade of A, while TYL has a Value grade of F.
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.