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

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Investors interested in Internet - Software stocks are likely familiar with Bumble Inc. (BMBL - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, both Bumble Inc. and Adyen N.V. Unsponsored ADR are sporting a Zacks Rank of #2 (Buy). 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 factor that value investors are interested in.

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 6.40, while ADYEY has a forward P/E of 45.03. We also note that BMBL has a PEG ratio of 0.22. 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. ADYEY currently has a PEG ratio of 2.25.

Another notable valuation metric for BMBL is its P/B ratio of 0.51. 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 14.52.

Based on these metrics and many more, BMBL holds a Value grade of A, while ADYEY has 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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