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MEET vs. APTI: Which Stock Should Value Investors Buy Now?

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Investors looking for stocks in the Internet - Software sector might want to consider either Meet Group or Apptio . 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Both Meet Group and Apptio have a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

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.

MEET currently has a forward P/E ratio of 14.03, while APTI has a forward P/E of 715.19. We also note that MEET has a PEG ratio of 0.70. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. APTI currently has a PEG ratio of 57.22.

Another notable valuation metric for MEET is its P/B ratio of 1.67. 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, APTI has a P/B of 10.71.

Based on these metrics and many more, MEET holds a Value grade of B, while APTI has a Value grade of F.

Both MEET and APTI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MEET is the superior value option right now.