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

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Investors interested in Internet - Software stocks are likely familiar with Bumble Inc. (BMBL - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Bumble Inc. has a Zacks Rank of #1 (Strong Buy), while F5 Networks has a Zacks Rank of #3 (Hold). This means that BMBL'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.

BMBL currently has a forward P/E ratio of 6.83, while FFIV has a forward P/E of 20.73. We also note that BMBL has a PEG ratio of 0.24. 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 3.01.

Another notable valuation metric for BMBL is its P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, FFIV has a P/B of 5.24.

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

BMBL sticks out from FFIV in both our Zacks Rank and Style Scores models, so value investors will likely feel that BMBL is the better option right now.


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