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BMBL vs. SMAR: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Internet - Software stocks have likely encountered both Bumble Inc. (BMBL - Free Report) and Smartsheet (SMAR - 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Bumble Inc. and Smartsheet are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

BMBL currently has a forward P/E ratio of 15.66, while SMAR has a forward P/E of 34.78. We also note that BMBL has a PEG ratio of 0.29. 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. SMAR currently has a PEG ratio of 1.21.

Another notable valuation metric for BMBL is its P/B ratio of 0.58. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SMAR has a P/B of 8.66.

Based on these metrics and many more, BMBL holds a Value grade of A, while SMAR has a Value grade of F.

Both BMBL and SMAR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BMBL is the superior value option right now.


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