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WIT vs. TYL: Which Stock Is the Better Value Option?
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Investors with an interest in Business - Software Services stocks have likely encountered both Wipro Limited (WIT - Free Report) and Tyler Technologies (TYL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Wipro Limited has a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WIT has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
WIT currently has a forward P/E ratio of 21.47, while TYL has a forward P/E of 45.95. We also note that WIT has a PEG ratio of 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TYL currently has a PEG ratio of 3.06.
Another notable valuation metric for WIT is its P/B ratio of 3.36. 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, TYL has a P/B of 5.91.
These metrics, and several others, help WIT earn a Value grade of B, while TYL has been given a Value grade of F.
WIT has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that WIT is the superior option right now.
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WIT vs. TYL: Which Stock Is the Better Value Option?
Investors with an interest in Business - Software Services stocks have likely encountered both Wipro Limited (WIT - Free Report) and Tyler Technologies (TYL - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Wipro Limited has a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that WIT has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.
WIT currently has a forward P/E ratio of 21.47, while TYL has a forward P/E of 45.95. We also note that WIT has a PEG ratio of 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TYL currently has a PEG ratio of 3.06.
Another notable valuation metric for WIT is its P/B ratio of 3.36. 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, TYL has a P/B of 5.91.
These metrics, and several others, help WIT earn a Value grade of B, while TYL has been given a Value grade of F.
WIT has seen stronger estimate revision activity and sports more attractive valuation metrics than TYL, so it seems like value investors will conclude that WIT is the superior option right now.