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HPE vs. ZI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Computer - Integrated Systems sector might want to consider either Hewlett Packard Enterprise (HPE - Free Report) or ZoomInfo (ZI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Hewlett Packard Enterprise has a Zacks Rank of #2 (Buy), while ZoomInfo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPE likely has seen a stronger improvement to its earnings outlook than ZI has recently. But this is just one factor that value investors are interested in.
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 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.
HPE currently has a forward P/E ratio of 8.19, while ZI has a forward P/E of 16.96. We also note that HPE has a PEG ratio of 2.25. 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. ZI currently has a PEG ratio of 2.35.
Another notable valuation metric for HPE is its P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZI has a P/B of 2.92.
These are just a few of the metrics contributing to HPE's Value grade of A and ZI's Value grade of D.
HPE stands above ZI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPE is the superior value option right now.
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HPE vs. ZI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Computer - Integrated Systems sector might want to consider either Hewlett Packard Enterprise (HPE - Free Report) or ZoomInfo (ZI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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, Hewlett Packard Enterprise has a Zacks Rank of #2 (Buy), while ZoomInfo has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPE likely has seen a stronger improvement to its earnings outlook than ZI has recently. But this is just one factor that value investors are interested in.
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 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.
HPE currently has a forward P/E ratio of 8.19, while ZI has a forward P/E of 16.96. We also note that HPE has a PEG ratio of 2.25. 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. ZI currently has a PEG ratio of 2.35.
Another notable valuation metric for HPE is its P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, ZI has a P/B of 2.92.
These are just a few of the metrics contributing to HPE's Value grade of A and ZI's Value grade of D.
HPE stands above ZI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPE is the superior value option right now.