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PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
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Investors interested in Computer - Software stocks are likely familiar with Progress Software (PRGS - Free Report) and Synopsys (SNPS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Progress Software and Synopsys are sporting a Zacks Rank of #1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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.
PRGS currently has a forward P/E ratio of 6.04, while SNPS has a forward P/E of 32.29. We also note that PRGS has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNPS currently has a PEG ratio of 1.44.
Another notable valuation metric for PRGS is its P/B ratio of 2.87. 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, SNPS has a P/B of 3.01.
Based on these metrics and many more, PRGS holds a Value grade of A, while SNPS has a Value grade of F.
Both PRGS and SNPS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRGS is the superior value option right now.
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PRGS vs. SNPS: Which Stock Should Value Investors Buy Now?
Investors interested in Computer - Software stocks are likely familiar with Progress Software (PRGS - Free Report) and Synopsys (SNPS - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Progress Software and Synopsys are sporting a Zacks Rank of #1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors.
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.
PRGS currently has a forward P/E ratio of 6.04, while SNPS has a forward P/E of 32.29. We also note that PRGS has a PEG ratio of 1.21. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNPS currently has a PEG ratio of 1.44.
Another notable valuation metric for PRGS is its P/B ratio of 2.87. 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, SNPS has a P/B of 3.01.
Based on these metrics and many more, PRGS holds a Value grade of A, while SNPS has a Value grade of F.
Both PRGS and SNPS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRGS is the superior value option right now.