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AKAM or TTD: Which Is the Better Value Stock Right Now?
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Investors interested in Internet - Services stocks are likely familiar with Akamai Technologies (AKAM - Free Report) and The Trade Desk (TTD - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Akamai Technologies has a Zacks Rank of #2 (Buy), while The Trade Desk has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AKAM is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
AKAM currently has a forward P/E ratio of 15.37, while TTD has a forward P/E of 61.15. We also note that AKAM has a PEG ratio of 1.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TTD currently has a PEG ratio of 2.55.
Another notable valuation metric for AKAM is its P/B ratio of 3.32. 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, TTD has a P/B of 19.18.
These metrics, and several others, help AKAM earn a Value grade of B, while TTD has been given a Value grade of F.
AKAM stands above TTD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AKAM is the superior value option right now.
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AKAM or TTD: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Services stocks are likely familiar with Akamai Technologies (AKAM - Free Report) and The Trade Desk (TTD - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Akamai Technologies has a Zacks Rank of #2 (Buy), while The Trade Desk has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that AKAM is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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.
AKAM currently has a forward P/E ratio of 15.37, while TTD has a forward P/E of 61.15. We also note that AKAM has a PEG ratio of 1.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TTD currently has a PEG ratio of 2.55.
Another notable valuation metric for AKAM is its P/B ratio of 3.32. 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, TTD has a P/B of 19.18.
These metrics, and several others, help AKAM earn a Value grade of B, while TTD has been given a Value grade of F.
AKAM stands above TTD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that AKAM is the superior value option right now.