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VRNT or INTU: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Computer - Software sector might want to consider either Verint Systems (VRNT - Free Report) or Intuit (INTU - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Verint Systems and Intuit are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that VRNT is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.

VRNT currently has a forward P/E ratio of 10.85, while INTU has a forward P/E of 38.21. We also note that VRNT has a PEG ratio of 0.90. 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. INTU currently has a PEG ratio of 2.62.

Another notable valuation metric for VRNT is its P/B ratio of 2.36. 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, INTU has a P/B of 10.38.

Based on these metrics and many more, VRNT holds a Value grade of B, while INTU has a Value grade of F.

VRNT stands above INTU thanks to its solid earnings outlook, and based on these valuation figures, we also feel that VRNT is the superior value option right now.


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