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MEET vs. APTI: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Software stocks have likely encountered both Meet Group and 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.

Meet Group and Apptio are both sporting 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.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

MEET currently has a forward P/E ratio of 11.18, while APTI has a forward P/E of 488.90. We also note that MEET has a PEG ratio of 0.56. 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. APTI currently has a PEG ratio of 39.11.

Another notable valuation metric for MEET is its P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, APTI has a P/B of 10.90.

These metrics, and several others, help MEET earn a Value grade of B, while APTI has been given 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.

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