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BZ or ZM: Which Is the Better Value Stock Right Now?

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Investors with an interest in Internet - Software stocks have likely encountered both KANZHUN LIMITED Sponsored ADR (BZ - Free Report) and Zoom Communications (ZM - 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.

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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, KANZHUN LIMITED Sponsored ADR has a Zacks Rank of #2 (Buy), while Zoom Communications has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that BZ likely has seen a stronger improvement to its earnings outlook than ZM has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

BZ currently has a forward P/E ratio of 12.78, while ZM has a forward P/E of 15.95. We also note that BZ has a PEG ratio of 1.36. 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. ZM currently has a PEG ratio of 3.14.

Another notable valuation metric for BZ is its P/B ratio of 2.15. 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, ZM has a P/B of 2.57.

These are just a few of the metrics contributing to BZ's Value grade of B and ZM's Value grade of C.

BZ stands above ZM thanks to its solid earnings outlook, and based on these valuation figures, we also feel that BZ is the superior value option right now.

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