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.
BILL vs. FFIV: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Internet - Software stocks are likely familiar with BILL Holdings (BILL - Free Report) and F5 Networks (FFIV - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, BILL Holdings has a Zacks Rank of #1 (Strong Buy), while F5 Networks has a Zacks Rank of #3 (Hold). This means that BILL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BILL currently has a forward P/E ratio of 13.36, while FFIV has a forward P/E of 22.55. We also note that BILL has a PEG ratio of 0.45. 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. FFIV currently has a PEG ratio of 3.01.
Another notable valuation metric for BILL is its P/B ratio of 1.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FFIV has a P/B of 5.71.
Based on these metrics and many more, BILL holds a Value grade of B, while FFIV has a Value grade of D.
BILL stands above FFIV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BILL is the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
BILL vs. FFIV: Which Stock Is the Better Value Option?
Investors interested in Internet - Software stocks are likely familiar with BILL Holdings (BILL - Free Report) and F5 Networks (FFIV - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, BILL Holdings has a Zacks Rank of #1 (Strong Buy), while F5 Networks has a Zacks Rank of #3 (Hold). This means that BILL's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BILL currently has a forward P/E ratio of 13.36, while FFIV has a forward P/E of 22.55. We also note that BILL has a PEG ratio of 0.45. 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. FFIV currently has a PEG ratio of 3.01.
Another notable valuation metric for BILL is its P/B ratio of 1.39. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, FFIV has a P/B of 5.71.
Based on these metrics and many more, BILL holds a Value grade of B, while FFIV has a Value grade of D.
BILL stands above FFIV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BILL is the superior value option right now.