We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
APPS or SPOT: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in Internet - Software stocks are likely familiar with Digital Turbine (APPS - Free Report) and Spotify (SPOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Digital Turbine and Spotify are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that APPS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
APPS currently has a forward P/E ratio of 12.90, while SPOT has a forward P/E of 38.30. We also note that APPS has a PEG ratio of 0.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SPOT currently has a PEG ratio of 1.34.
Another notable valuation metric for APPS is its P/B ratio of 7.04. 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, SPOT has a P/B of 11.56.
These are just a few of the metrics contributing to APPS's Value grade of B and SPOT's Value grade of D.
APPS sticks out from SPOT in both our Zacks Rank and Style Scores models, so value investors will likely feel that APPS is the better option right now.
View the Zacks #1 Rank List
Image: Bigstock
APPS or SPOT: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Software stocks are likely familiar with Digital Turbine (APPS - Free Report) and Spotify (SPOT - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 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.
Digital Turbine and Spotify are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that APPS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 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.
APPS currently has a forward P/E ratio of 12.90, while SPOT has a forward P/E of 38.30. We also note that APPS has a PEG ratio of 0.41. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SPOT currently has a PEG ratio of 1.34.
Another notable valuation metric for APPS is its P/B ratio of 7.04. 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, SPOT has a P/B of 11.56.
These are just a few of the metrics contributing to APPS's Value grade of B and SPOT's Value grade of D.
APPS sticks out from SPOT in both our Zacks Rank and Style Scores models, so value investors will likely feel that APPS is the better option right now.