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CCC 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 CCC Intelligent Solutions Holdings Inc. (CCC - 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.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, CCC Intelligent Solutions Holdings Inc. has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CCC has an improving earnings outlook. 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.

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.

CCC currently has a forward P/E ratio of 12.58, while ADYEY has a forward P/E of 24.56. We also note that CCC has a PEG ratio of 0.94. 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. ADYEY currently has a PEG ratio of 1.45.

Another notable valuation metric for CCC is its P/B ratio of 1.88. 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 6.68.

These metrics, and several others, help CCC earn a Value grade of B, while ADYEY has been given a Value grade of D.

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

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