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EGHT or ADSK: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Internet - Software sector might want to consider either 8x8 (EGHT - Free Report) or Autodesk (ADSK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
8x8 and Autodesk are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that EGHT likely has seen a stronger improvement to its earnings outlook than ADSK has recently. 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.
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.
EGHT currently has a forward P/E ratio of 5.18, while ADSK has a forward P/E of 16.81. We also note that EGHT has a PEG ratio of 0.73. 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. ADSK currently has a PEG ratio of 1.07.
Another notable valuation metric for EGHT is its P/B ratio of 1.76. 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, ADSK has a P/B of 13.12.
These are just a few of the metrics contributing to EGHT's Value grade of A and ADSK's Value grade of C.
EGHT stands above ADSK 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 ADSK: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Internet - Software sector might want to consider either 8x8 (EGHT - Free Report) or Autodesk (ADSK - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
8x8 and Autodesk are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that EGHT likely has seen a stronger improvement to its earnings outlook than ADSK has recently. 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.
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.
EGHT currently has a forward P/E ratio of 5.18, while ADSK has a forward P/E of 16.81. We also note that EGHT has a PEG ratio of 0.73. 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. ADSK currently has a PEG ratio of 1.07.
Another notable valuation metric for EGHT is its P/B ratio of 1.76. 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, ADSK has a P/B of 13.12.
These are just a few of the metrics contributing to EGHT's Value grade of A and ADSK's Value grade of C.
EGHT stands above ADSK thanks to its solid earnings outlook, and based on these valuation figures, we also feel that EGHT is the superior value option right now.