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APPS vs. TMSNY: Which Stock Is the Better Value Option?

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Investors interested in Internet - Software stocks are likely familiar with Digital Turbine (APPS - Free Report) and TEMENOS GROUP (TMSNY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Digital Turbine and TEMENOS GROUP are holding a Zacks Rank of #2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is only part of the picture for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.

APPS currently has a forward P/E ratio of 10.45, while TMSNY has a forward P/E of 18.02. We also note that APPS has a PEG ratio of 0.55. 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. TMSNY currently has a PEG ratio of 1.74.

Another notable valuation metric for APPS is its P/B ratio of 5.48. 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, TMSNY has a P/B of 13.05.

Based on these metrics and many more, APPS holds a Value grade of B, while TMSNY has a Value grade of C.

Both APPS and TMSNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that APPS is the superior value option right now.

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