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FUTU or ZETA: Which Is the Better Value Stock Right Now?

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Investors interested in Technology Services stocks are likely familiar with Futu Holdings Limited Sponsored ADR (FUTU - Free Report) and Zeta Global Holdings (ZETA - 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.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, Futu Holdings Limited Sponsored ADR has a Zacks Rank of #2 (Buy), while Zeta Global Holdings has a Zacks Rank of #3 (Hold). This means that FUTU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

FUTU currently has a forward P/E ratio of 22.68, while ZETA has a forward P/E of 27.25. We also note that FUTU has a PEG ratio of 0.83. 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. ZETA currently has a PEG ratio of 1.44.

Another notable valuation metric for FUTU is its P/B ratio of 6.14. 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, ZETA has a P/B of 6.55.

These are just a few of the metrics contributing to FUTU's Value grade of B and ZETA's Value grade of D.

FUTU has seen stronger estimate revision activity and sports more attractive valuation metrics than ZETA, so it seems like value investors will conclude that FUTU is the superior option right now.


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Futu Holdings Limited Sponsored ADR (FUTU) - free report >>

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