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AUDC or ANET: Which Is the Better Value Stock Right Now?
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Investors interested in Communication - Components stocks are likely familiar with AudioCodes (AUDC - Free Report) and Arista Networks (ANET - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
AudioCodes and Arista Networks are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AUDC currently has a forward P/E ratio of 12.74, while ANET has a forward P/E of 38.81. We also note that AUDC has a PEG ratio of 0.51. 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. ANET currently has a PEG ratio of 1.89.
Another notable valuation metric for AUDC is its P/B ratio of 2.32. 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, ANET has a P/B of 13.37.
These are just a few of the metrics contributing to AUDC's Value grade of B and ANET's Value grade of F.
Both AUDC and ANET are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AUDC is the superior value option right now.
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AUDC or ANET: Which Is the Better Value Stock Right Now?
Investors interested in Communication - Components stocks are likely familiar with AudioCodes (AUDC - Free Report) and Arista Networks (ANET - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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.
AudioCodes and Arista Networks are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
AUDC currently has a forward P/E ratio of 12.74, while ANET has a forward P/E of 38.81. We also note that AUDC has a PEG ratio of 0.51. 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. ANET currently has a PEG ratio of 1.89.
Another notable valuation metric for AUDC is its P/B ratio of 2.32. 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, ANET has a P/B of 13.37.
These are just a few of the metrics contributing to AUDC's Value grade of B and ANET's Value grade of F.
Both AUDC and ANET are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AUDC is the superior value option right now.