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.
DFIN vs. TYL: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in stocks from the Internet - Software and Services sector have probably already heard of Donnelley Financial Solutions (DFIN - Free Report) and Tyler Technologies (TYL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Donnelley Financial Solutions has a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DFIN likely has seen a stronger improvement to its earnings outlook than TYL has recently. However, value investors will care about much more than just this.
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 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.
DFIN currently has a forward P/E ratio of 12.98, while TYL has a forward P/E of 32.88. We also note that DFIN has a PEG ratio of 1.73. 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. TYL currently has a PEG ratio of 2.19.
Another notable valuation metric for DFIN is its P/B ratio of 4. 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, TYL has a P/B of 6.13.
These are just a few of the metrics contributing to DFIN's Value grade of A and TYL's Value grade of D.
DFIN stands above TYL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DFIN is the superior value option right now.
View the Zacks #1 Rank List
Image: Bigstock
DFIN vs. TYL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Software and Services sector have probably already heard of Donnelley Financial Solutions (DFIN - Free Report) and Tyler Technologies (TYL - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Donnelley Financial Solutions has a Zacks Rank of #2 (Buy), while Tyler Technologies has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that DFIN likely has seen a stronger improvement to its earnings outlook than TYL has recently. However, value investors will care about much more than just this.
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 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.
DFIN currently has a forward P/E ratio of 12.98, while TYL has a forward P/E of 32.88. We also note that DFIN has a PEG ratio of 1.73. 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. TYL currently has a PEG ratio of 2.19.
Another notable valuation metric for DFIN is its P/B ratio of 4. 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, TYL has a P/B of 6.13.
These are just a few of the metrics contributing to DFIN's Value grade of A and TYL's Value grade of D.
DFIN stands above TYL thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DFIN is the superior value option right now.