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DH or FFIV: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Internet - Software sector have probably already heard of Definitive Healthcare Corp. (DH - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Definitive Healthcare Corp. is sporting a Zacks Rank of #2 (Buy), while F5 Networks has a Zacks Rank of #3 (Hold). This means that DH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
DH currently has a forward P/E ratio of 17.28, while FFIV has a forward P/E of 21.59. We also note that DH has a PEG ratio of 1.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FFIV currently has a PEG ratio of 3.05.
Another notable valuation metric for DH is its P/B ratio of 0.89. 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, FFIV has a P/B of 5.52.
These metrics, and several others, help DH earn a Value grade of B, while FFIV has been given a Value grade of D.
DH has seen stronger estimate revision activity and sports more attractive valuation metrics than FFIV, so it seems like value investors will conclude that DH is the superior option right now.
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DH or FFIV: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Internet - Software sector have probably already heard of Definitive Healthcare Corp. (DH - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Definitive Healthcare Corp. is sporting a Zacks Rank of #2 (Buy), while F5 Networks has a Zacks Rank of #3 (Hold). This means that DH's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
DH currently has a forward P/E ratio of 17.28, while FFIV has a forward P/E of 21.59. We also note that DH has a PEG ratio of 1.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FFIV currently has a PEG ratio of 3.05.
Another notable valuation metric for DH is its P/B ratio of 0.89. 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, FFIV has a P/B of 5.52.
These metrics, and several others, help DH earn a Value grade of B, while FFIV has been given a Value grade of D.
DH has seen stronger estimate revision activity and sports more attractive valuation metrics than FFIV, so it seems like value investors will conclude that DH is the superior option right now.