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FIVN vs. ADYEY: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Internet - Software sector might want to consider either Five9 (FIVN - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Five9 has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FIVN has an improving earnings 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FIVN currently has a forward P/E ratio of 8.46, while ADYEY has a forward P/E of 40.74. We also note that FIVN has a PEG ratio of 0.63. 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 2.22.
Another notable valuation metric for FIVN is its P/B ratio of 2.61. 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, ADYEY has a P/B of 9.49.
Based on these metrics and many more, FIVN holds a Value grade of B, while ADYEY has a Value grade of F.
FIVN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FIVN is likely the superior value option right now.
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FIVN vs. ADYEY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Software sector might want to consider either Five9 (FIVN - Free Report) or Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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, Five9 has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that FIVN has an improving earnings 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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
FIVN currently has a forward P/E ratio of 8.46, while ADYEY has a forward P/E of 40.74. We also note that FIVN has a PEG ratio of 0.63. 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 2.22.
Another notable valuation metric for FIVN is its P/B ratio of 2.61. 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, ADYEY has a P/B of 9.49.
Based on these metrics and many more, FIVN holds a Value grade of B, while ADYEY has a Value grade of F.
FIVN is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that FIVN is likely the superior value option right now.