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SAP vs. INTU: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Computer - Software sector might want to consider either SAP (SAP - Free Report) or 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.
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.
SAP has a Zacks Rank of #2 (Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SAP has an improving earnings 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SAP currently has a forward P/E ratio of 20.94, while INTU has a forward P/E of 28.60. We also note that SAP has a PEG ratio of 1.02. 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 1.93.
Another notable valuation metric for SAP is its P/B ratio of 2.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, INTU has a P/B of 6.82.
These metrics, and several others, help SAP earn a Value grade of B, while INTU has been given a Value grade of D.
SAP sticks out from INTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that SAP is the better option right now.
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SAP vs. INTU: Which Stock Is the Better Value Option?
Investors looking for stocks in the Computer - Software sector might want to consider either SAP (SAP - Free Report) or 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.
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.
SAP has a Zacks Rank of #2 (Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SAP has an improving earnings 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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
SAP currently has a forward P/E ratio of 20.94, while INTU has a forward P/E of 28.60. We also note that SAP has a PEG ratio of 1.02. 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 1.93.
Another notable valuation metric for SAP is its P/B ratio of 2.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, INTU has a P/B of 6.82.
These metrics, and several others, help SAP earn a Value grade of B, while INTU has been given a Value grade of D.
SAP sticks out from INTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that SAP is the better option right now.