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

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Investors interested in stocks from the Internet - Software sector have probably already heard of VTEX (VTEX - Free Report) and Adyen N.V. Unsponsored ADR (ADYEY - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, VTEX is sporting a Zacks Rank of #2 (Buy), while Adyen N.V. Unsponsored ADR has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that VTEX likely has seen a stronger improvement to its earnings outlook than ADYEY has recently. However, value investors will care about much more than just this.

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 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.

VTEX currently has a forward P/E ratio of 18.72, while ADYEY has a forward P/E of 28.50. We also note that VTEX has a PEG ratio of 0.48. 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 1.69.

Another notable valuation metric for VTEX is its P/B ratio of 2.76. 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 7.44.

These are just a few of the metrics contributing to VTEX's Value grade of B and ADYEY's Value grade of F.

VTEX has seen stronger estimate revision activity and sports more attractive valuation metrics than ADYEY, so it seems like value investors will conclude that VTEX is the superior option right now.

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