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EGHT vs. NEWR: Which Stock Is the Better Value Option?
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Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT - Free Report) and New Relic . 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 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.
8x8 and New Relic are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EGHT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EGHT currently has a forward P/E ratio of 7.20, while NEWR has a forward P/E of 42.10. We also note that EGHT has a PEG ratio of 0.33. 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. NEWR currently has a PEG ratio of 1.57.
Another notable valuation metric for EGHT is its P/B ratio of 4.40. 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, NEWR has a P/B of 13.95.
Based on these metrics and many more, EGHT holds a Value grade of B, while NEWR has a Value grade of F.
EGHT sticks out from NEWR in both our Zacks Rank and Style Scores models, so value investors will likely feel that EGHT is the better option right now.
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EGHT vs. NEWR: Which Stock Is the Better Value Option?
Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT - Free Report) and New Relic . 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 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.
8x8 and New Relic are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EGHT is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EGHT currently has a forward P/E ratio of 7.20, while NEWR has a forward P/E of 42.10. We also note that EGHT has a PEG ratio of 0.33. 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. NEWR currently has a PEG ratio of 1.57.
Another notable valuation metric for EGHT is its P/B ratio of 4.40. 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, NEWR has a P/B of 13.95.
Based on these metrics and many more, EGHT holds a Value grade of B, while NEWR has a Value grade of F.
EGHT sticks out from NEWR in both our Zacks Rank and Style Scores models, so value investors will likely feel that EGHT is the better option right now.