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VMW vs. INTU: Which Stock Should Value Investors Buy Now?
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Investors interested in Computer - Software stocks are likely familiar with VMware and Intuit (INTU - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
VMware has a Zacks Rank of #2 (Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. This means that VMW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
VMW currently has a forward P/E ratio of 15.73, while INTU has a forward P/E of 55.74. We also note that VMW has a PEG ratio of 1.24. 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. INTU currently has a PEG ratio of 3.56.
Another notable valuation metric for VMW is its P/B ratio of 4.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, INTU has a P/B of 18.84.
Based on these metrics and many more, VMW holds a Value grade of B, while INTU has a Value grade of D.
VMW is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VMW is likely the superior value option right now.
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VMW vs. INTU: Which Stock Should Value Investors Buy Now?
Investors interested in Computer - Software stocks are likely familiar with VMware and Intuit (INTU - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. 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.
VMware has a Zacks Rank of #2 (Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. This means that VMW's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst 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.
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.
VMW currently has a forward P/E ratio of 15.73, while INTU has a forward P/E of 55.74. We also note that VMW has a PEG ratio of 1.24. 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. INTU currently has a PEG ratio of 3.56.
Another notable valuation metric for VMW is its P/B ratio of 4.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, INTU has a P/B of 18.84.
Based on these metrics and many more, VMW holds a Value grade of B, while INTU has a Value grade of D.
VMW is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that VMW is likely the superior value option right now.