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INTU or CDNS: Which Is the Better Value Stock Right Now?
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Investors interested in Computer - Software stocks are likely familiar with Intuit (INTU - Free Report) and Cadence Design Systems (CDNS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Intuit has a Zacks Rank of #2 (Buy), while Cadence Design Systems has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INTU is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
INTU currently has a forward P/E ratio of 12.27, while CDNS has a forward P/E of 39.83. We also note that INTU has a PEG ratio of 0.82. 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. CDNS currently has a PEG ratio of 2.73.
Another notable valuation metric for INTU is its P/B ratio of 4.45. 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, CDNS has a P/B of 12.99.
These metrics, and several others, help INTU earn a Value grade of B, while CDNS has been given a Value grade of F.
INTU is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that INTU is likely the superior value option right now.
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INTU or CDNS: Which Is the Better Value Stock Right Now?
Investors interested in Computer - Software stocks are likely familiar with Intuit (INTU - Free Report) and Cadence Design Systems (CDNS - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Intuit has a Zacks Rank of #2 (Buy), while Cadence Design Systems has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that INTU is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
INTU currently has a forward P/E ratio of 12.27, while CDNS has a forward P/E of 39.83. We also note that INTU has a PEG ratio of 0.82. 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. CDNS currently has a PEG ratio of 2.73.
Another notable valuation metric for INTU is its P/B ratio of 4.45. 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, CDNS has a P/B of 12.99.
These metrics, and several others, help INTU earn a Value grade of B, while CDNS has been given a Value grade of F.
INTU is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that INTU is likely the superior value option right now.