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DELL vs. DT: Which Stock Is the Better Value Option?
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Investors interested in Computers - IT Services stocks are likely familiar with Dell Technologies (DELL - Free Report) and Dynatrace (DT - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dell Technologies is sporting a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). This means that DELL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
DELL currently has a forward P/E ratio of 11.93, while DT has a forward P/E of 102.25. We also note that DELL has a PEG ratio of 0.99. 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. DT currently has a PEG ratio of 13.18.
Another notable valuation metric for DELL is its P/B ratio of 8.91. 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, DT has a P/B of 15.84.
These are just a few of the metrics contributing to DELL's Value grade of A and DT's Value grade of D.
DELL sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DELL is the better option right now.
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DELL vs. DT: Which Stock Is the Better Value Option?
Investors interested in Computers - IT Services stocks are likely familiar with Dell Technologies (DELL - Free Report) and Dynatrace (DT - 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.
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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Dell Technologies is sporting a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold). This means that DELL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
DELL currently has a forward P/E ratio of 11.93, while DT has a forward P/E of 102.25. We also note that DELL has a PEG ratio of 0.99. 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. DT currently has a PEG ratio of 13.18.
Another notable valuation metric for DELL is its P/B ratio of 8.91. 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, DT has a P/B of 15.84.
These are just a few of the metrics contributing to DELL's Value grade of A and DT's Value grade of D.
DELL sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DELL is the better option right now.