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PERF vs. PANW: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Software sector have probably already heard of Perfect Corp. (PERF - Free Report) and Palo Alto Networks (PANW - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Perfect Corp. is sporting a Zacks Rank of #2 (Buy), while Palo Alto Networks has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PERF likely has seen a stronger improvement to its earnings outlook than PANW has recently. But this is just one factor that value investors are interested in.
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.
PERF currently has a forward P/E ratio of 32.43, while PANW has a forward P/E of 53.48. We also note that PERF has a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PANW currently has a PEG ratio of 2.02.
Another notable valuation metric for PERF is its P/B ratio of 1.39. 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, PANW has a P/B of 21.79.
Based on these metrics and many more, PERF holds a Value grade of B, while PANW has a Value grade of F.
PERF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PERF is likely the superior value option right now.
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PERF vs. PANW: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Software sector have probably already heard of Perfect Corp. (PERF - Free Report) and Palo Alto Networks (PANW - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Perfect Corp. is sporting a Zacks Rank of #2 (Buy), while Palo Alto Networks has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PERF likely has seen a stronger improvement to its earnings outlook than PANW has recently. But this is just one factor that value investors are interested in.
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.
PERF currently has a forward P/E ratio of 32.43, while PANW has a forward P/E of 53.48. We also note that PERF has a PEG ratio of 1.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PANW currently has a PEG ratio of 2.02.
Another notable valuation metric for PERF is its P/B ratio of 1.39. 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, PANW has a P/B of 21.79.
Based on these metrics and many more, PERF holds a Value grade of B, while PANW has a Value grade of F.
PERF is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PERF is likely the superior value option right now.