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VRRM or ADYEY: Which Is the Better Value Stock Right Now?

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Investors interested in Internet - Software stocks are likely familiar with VERRA MOBILITY CORP (VRRM - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. 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.

VERRA MOBILITY CORP has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VRRM has an improving earnings outlook. 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.

VRRM currently has a forward P/E ratio of 16.24, while ADYEY has a forward P/E of 51.15. We also note that VRRM has a PEG ratio of 1.67. 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. ADYEY currently has a PEG ratio of 2.27.

Another notable valuation metric for VRRM is its P/B ratio of 13.48. 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, ADYEY has a P/B of 14.99.

These are just a few of the metrics contributing to VRRM's Value grade of B and ADYEY's Value grade of F.

VRRM 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 VRRM is likely the superior value option right now.


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VERRA MOBILITY CORP (VRRM) - free report >>

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