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DOX or DT: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Computers - IT Services sector might want to consider either Amdocs (DOX - Free Report) or Dynatrace (DT - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Amdocs has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DOX is likely seeing its earnings outlook improve to a greater extent. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DOX currently has a forward P/E ratio of 16.23, while DT has a forward P/E of 50.15. We also note that DOX has a PEG ratio of 1.48. 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. DT currently has a PEG ratio of 5.50.
Another notable valuation metric for DOX is its P/B ratio of 3.18. 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, DT has a P/B of 9.01.
These metrics, and several others, help DOX earn a Value grade of B, while DT has been given a Value grade of F.
DOX sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOX is the better option right now.
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DOX or DT: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computers - IT Services sector might want to consider either Amdocs (DOX - Free Report) or Dynatrace (DT - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Amdocs has a Zacks Rank of #2 (Buy), while Dynatrace has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DOX is likely seeing its earnings outlook improve to a greater extent. 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
DOX currently has a forward P/E ratio of 16.23, while DT has a forward P/E of 50.15. We also note that DOX has a PEG ratio of 1.48. 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. DT currently has a PEG ratio of 5.50.
Another notable valuation metric for DOX is its P/B ratio of 3.18. 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, DT has a P/B of 9.01.
These metrics, and several others, help DOX earn a Value grade of B, while DT has been given a Value grade of F.
DOX sticks out from DT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DOX is the better option right now.