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EGHT or BL: Which Is the Better Value Stock Right Now?
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Investors with an interest in Internet - Software stocks have likely encountered both 8x8 (EGHT - Free Report) and BlackLine (BL - 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 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.
Currently, 8x8 has a Zacks Rank of #2 (Buy), while BlackLine has a Zacks Rank of #3 (Hold). This means that EGHT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EGHT currently has a forward P/E ratio of 5.66, while BL has a forward P/E of 13.62. We also note that EGHT has a PEG ratio of 0.80. 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. BL currently has a PEG ratio of 0.89.
Another notable valuation metric for EGHT is its P/B ratio of 1.93. 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, BL has a P/B of 6.26.
These metrics, and several others, help EGHT earn a Value grade of A, while BL has been given a Value grade of C.
EGHT stands above BL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EGHT is the superior value option right now.
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EGHT or BL: Which Is the Better Value Stock Right Now?
Investors with an interest in Internet - Software stocks have likely encountered both 8x8 (EGHT - Free Report) and BlackLine (BL - 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 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.
Currently, 8x8 has a Zacks Rank of #2 (Buy), while BlackLine has a Zacks Rank of #3 (Hold). This means that EGHT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
EGHT currently has a forward P/E ratio of 5.66, while BL has a forward P/E of 13.62. We also note that EGHT has a PEG ratio of 0.80. 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. BL currently has a PEG ratio of 0.89.
Another notable valuation metric for EGHT is its P/B ratio of 1.93. 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, BL has a P/B of 6.26.
These metrics, and several others, help EGHT earn a Value grade of A, while BL has been given a Value grade of C.
EGHT stands above BL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EGHT is the superior value option right now.