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

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Investors interested in stocks from the Internet - Software sector have probably already heard of Oddity Tech (ODD - 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Oddity Tech and Adyen N.V. Unsponsored ADR are sporting Zacks Ranks of #2 (Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ODD is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.

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 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.

ODD currently has a forward P/E ratio of 13.87, while ADYEY has a forward P/E of 32.33. We also note that ODD has a PEG ratio of 1.16. 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 1.76.

Another notable valuation metric for ODD is its P/B ratio of 4.91. 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, ADYEY has a P/B of 9.06.

These are just a few of the metrics contributing to ODD's Value grade of B and ADYEY's Value grade of F.

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


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Adyen N.V. Unsponsored ADR (ADYEY) - free report >>

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