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DELL or DT: 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 Dynatrace (DT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Dell Technologies has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DELL likely has seen a stronger improvement to its earnings outlook than DT has recently. But this is just one piece of the puzzle for value investors.
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.
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.
DELL currently has a forward P/E ratio of 12.46, while DT has a forward P/E of 70.39. We also note that DELL has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 1.99.
Another notable valuation metric for DELL is its P/B ratio of 9.61. 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, DT has a P/B of 11.85.
These are just a few of the metrics contributing to DELL's Value grade of A and DT's Value grade of D.
DELL has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DELL is the superior option right now.
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DELL or DT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computers - IT Services sector might want to consider either Dell Technologies (DELL - Free Report) or Dynatrace (DT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Dell Technologies has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that DELL likely has seen a stronger improvement to its earnings outlook than DT has recently. But this is just one piece of the puzzle for value investors.
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.
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.
DELL currently has a forward P/E ratio of 12.46, while DT has a forward P/E of 70.39. We also note that DELL has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. DT currently has a PEG ratio of 1.99.
Another notable valuation metric for DELL is its P/B ratio of 9.61. 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, DT has a P/B of 11.85.
These are just a few of the metrics contributing to DELL's Value grade of A and DT's Value grade of D.
DELL has seen stronger estimate revision activity and sports more attractive valuation metrics than DT, so it seems like value investors will conclude that DELL is the superior option right now.