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GTM vs. ADYEY: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Software stocks have likely encountered both ZoomInfo (GTM - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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.

ZoomInfo has a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that GTM likely has seen a stronger improvement to its earnings outlook than ADYEY has recently. But this is just one piece of the puzzle 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.

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.

GTM currently has a forward P/E ratio of 3.70, while ADYEY has a forward P/E of 24.11. We also note that GTM has a PEG ratio of 0.57. 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. ADYEY currently has a PEG ratio of 1.45.

Another notable valuation metric for GTM is its P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ADYEY has a P/B of 6.35.

Based on these metrics and many more, GTM holds a Value grade of A, while ADYEY has a Value grade of F.

GTM sticks out from ADYEY 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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