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GTM or ADSK: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Internet - Software sector might want to consider either ZoomInfo (GTM - Free Report) or Autodesk (ADSK - 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.

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.

ZoomInfo has a Zacks Rank of #2 (Buy), while Autodesk has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that GTM likely has seen a stronger improvement to its earnings outlook than ADSK has recently. But this is only part of the picture for value investors.

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 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.

GTM currently has a forward P/E ratio of 10.16, while ADSK has a forward P/E of 30.93. We also note that GTM has a PEG ratio of 1.15. 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. ADSK currently has a PEG ratio of 1.96.

Another notable valuation metric for GTM is its P/B ratio of 2.01. 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, ADSK has a P/B of 24.36.

Based on these metrics and many more, GTM holds a Value grade of B, while ADSK has a Value grade of F.

GTM 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 GTM is likely the superior value option right now.


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