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FUTU vs. CLBT: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Technology Services sector have probably already heard of Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Cellebrite DI Ltd. (CLBT - 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.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Futu Holdings Limited Sponsored ADR and Cellebrite DI Ltd. are holding a Zacks Rank of # 2 (Buy). 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. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when 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.

FUTU currently has a forward P/E ratio of 17.41, while CLBT has a forward P/E of 37.23. We also note that FUTU has a PEG ratio of 1.25. 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. CLBT currently has a PEG ratio of 2.07.

Another notable valuation metric for FUTU is its P/B ratio of 3.76. 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, CLBT has a P/B of 64.97.

These metrics, and several others, help FUTU earn a Value grade of B, while CLBT has been given a Value grade of C.

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


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Futu Holdings Limited Sponsored ADR (FUTU) - free report >>

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