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SNX vs. NOW: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Computers - IT Services sector might want to consider either TD SYNNEX (SNX - Free Report) or ServiceNow (NOW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
TD SYNNEX has a Zacks Rank of #1 (Strong Buy), while ServiceNow has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNX has an improving earnings 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.
SNX currently has a forward P/E ratio of 11.65, while NOW has a forward P/E of 38.66. We also note that SNX has a PEG ratio of 0.47. 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. NOW currently has a PEG ratio of 1.58.
Another notable valuation metric for SNX is its P/B ratio of 2.12. 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, NOW has a P/B of 12.97.
These metrics, and several others, help SNX earn a Value grade of B, while NOW has been given a Value grade of F.
SNX stands above NOW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.
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SNX vs. NOW: Which Stock Is the Better Value Option?
Investors looking for stocks in the Computers - IT Services sector might want to consider either TD SYNNEX (SNX - Free Report) or ServiceNow (NOW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
TD SYNNEX has a Zacks Rank of #1 (Strong Buy), while ServiceNow has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that SNX has an improving earnings 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.
SNX currently has a forward P/E ratio of 11.65, while NOW has a forward P/E of 38.66. We also note that SNX has a PEG ratio of 0.47. 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. NOW currently has a PEG ratio of 1.58.
Another notable valuation metric for SNX is its P/B ratio of 2.12. 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, NOW has a P/B of 12.97.
These metrics, and several others, help SNX earn a Value grade of B, while NOW has been given a Value grade of F.
SNX stands above NOW thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SNX is the superior value option right now.