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WAY vs. FFIV: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Internet - Software stocks have likely encountered both Waystar Holding (WAY - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Waystar Holding and F5 Networks are holding a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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 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.
WAY currently has a forward P/E ratio of 15.66, while FFIV has a forward P/E of 18.71. We also note that WAY has a PEG ratio of 0.88. 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. FFIV currently has a PEG ratio of 6.43.
Another notable valuation metric for WAY is its P/B ratio of 1.27. 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 4.76.
These metrics, and several others, help WAY earn a Value grade of B, while FFIV has been given a Value grade of D.
Both WAY and FFIV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WAY is the superior value option right now.
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WAY vs. FFIV: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Software stocks have likely encountered both Waystar Holding (WAY - Free Report) and F5 Networks (FFIV - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Waystar Holding and F5 Networks are holding a Zacks Rank of #2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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 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.
WAY currently has a forward P/E ratio of 15.66, while FFIV has a forward P/E of 18.71. We also note that WAY has a PEG ratio of 0.88. 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. FFIV currently has a PEG ratio of 6.43.
Another notable valuation metric for WAY is its P/B ratio of 1.27. 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 4.76.
These metrics, and several others, help WAY earn a Value grade of B, while FFIV has been given a Value grade of D.
Both WAY and FFIV are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that WAY is the superior value option right now.