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JCOM vs. NICE: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Software stocks have likely encountered both j2 Global and Nice (NICE - 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.

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

Right now, j2 Global is sporting a Zacks Rank of #1 (Strong Buy), while Nice has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JCOM has an improving earnings outlook. But this is just one factor that value investors are interested in.

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 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.

JCOM currently has a forward P/E ratio of 11.96, while NICE has a forward P/E of 26.73. We also note that JCOM has a PEG ratio of 1.50. 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. NICE currently has a PEG ratio of 2.63.

Another notable valuation metric for JCOM is its P/B ratio of 3.92. 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, NICE has a P/B of 4.07.

These metrics, and several others, help JCOM earn a Value grade of B, while NICE has been given a Value grade of D.

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


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