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GTM or BRZE: Which Is the Better Value Stock Right Now?

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Investors with an interest in Internet - Software stocks have likely encountered both ZoomInfo (GTM - Free Report) and Braze, Inc. (BRZE - 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

ZoomInfo and Braze, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GTM has an improving earnings outlook. 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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

GTM currently has a forward P/E ratio of 3.66, while BRZE has a forward P/E of 30.57. We also note that GTM has a PEG ratio of 0.81. 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. BRZE currently has a PEG ratio of 1.02.

Another notable valuation metric for GTM is its P/B ratio of 0.84. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BRZE has a P/B of 3.48.

These are just a few of the metrics contributing to GTM's Value grade of A and BRZE's Value grade of D.

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

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