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VTEX or SE: Which Is the Better Value Stock Right Now?

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Investors looking for stocks in the Internet - Software sector might want to consider either VTEX (VTEX - Free Report) or Sea Limited Sponsored ADR (SE - 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.

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 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.

Right now, VTEX is sporting a Zacks Rank of #2 (Buy), while Sea Limited Sponsored ADR has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VTEX has an improving earnings outlook. But this is only part of the picture for value investors.

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.

VTEX currently has a forward P/E ratio of 23.41, while SE has a forward P/E of 25.63. We also note that VTEX has a PEG ratio of 0.61. 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. SE currently has a PEG ratio of 0.80.

Another notable valuation metric for VTEX is its P/B ratio of 3.2. 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, SE has a P/B of 5.

These metrics, and several others, help VTEX earn a Value grade of B, while SE has been given a Value grade of C.

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

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