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BMBL vs. ADYEY: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Internet - Software sector have probably already heard of Bumble Inc. (BMBL - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Bumble Inc. and Adyen N.V. Unsponsored ADR are both sporting a Zacks Rank of #2 (Buy) right now. 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 piece of the puzzle 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.

BMBL currently has a forward P/E ratio of 6.12, while ADYEY has a forward P/E of 49.33. We also note that BMBL has a PEG ratio of 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ADYEY currently has a PEG ratio of 2.42.

Another notable valuation metric for BMBL is its P/B ratio of 0.38. 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, ADYEY has a P/B of 15.3.

These metrics, and several others, help BMBL earn a Value grade of A, while ADYEY has been given a Value grade of F.

Both BMBL and ADYEY 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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