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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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, ZoomInfo has a Zacks Rank of #2 (Buy), while Autodesk has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GTM likely has seen a stronger improvement to its earnings outlook than ADSK has recently. 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

GTM currently has a forward P/E ratio of 10.26, while ADSK has a forward P/E of 29.31. We also note that GTM has a PEG ratio of 1.45. 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 1.86.

Another notable valuation metric for GTM is its P/B ratio of 2.11. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ADSK has a P/B of 23.1.

These metrics, and several others, help GTM earn a Value grade of B, while ADSK has been given a Value grade of F.

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


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