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CLVT or FFIV: Which Is the Better Value Stock Right Now?

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Investors with an interest in Internet - Software stocks have likely encountered both Clarivate PLC (CLVT - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

Clarivate PLC has a Zacks Rank of #2 (Buy), while F5 Networks has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that CLVT likely has seen a stronger improvement to its earnings outlook than FFIV has recently. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CLVT currently has a forward P/E ratio of 10.71, while FFIV has a forward P/E of 13.05. We also note that CLVT has a PEG ratio of 0.82. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FFIV currently has a PEG ratio of 1.47.

Another notable valuation metric for CLVT is its P/B ratio of 1.07. 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, FFIV has a P/B of 2.92.

These are just a few of the metrics contributing to CLVT's Value grade of B and FFIV's Value grade of C.

CLVT has seen stronger estimate revision activity and sports more attractive valuation metrics than FFIV, so it seems like value investors will conclude that CLVT is the superior option right now.


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