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DFIN vs. QUOT: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Internet - Software and Services sector have probably already heard of Donnelley Financial Solutions (DFIN - Free Report) and Quotient Technology (QUOT - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Donnelley Financial Solutions is sporting a Zacks Rank of #2 (Buy), while Quotient Technology has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DFIN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
DFIN currently has a forward P/E ratio of 8.01, while QUOT has a forward P/E of 145.29. We also note that DFIN has a PEG ratio of 6.26. 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. QUOT currently has a PEG ratio of 7.26.
Another notable valuation metric for DFIN is its P/B ratio of 1.33. 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, QUOT has a P/B of 3.15.
These metrics, and several others, help DFIN earn a Value grade of A, while QUOT has been given a Value grade of F.
DFIN sticks out from QUOT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DFIN is the better option right now.
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DFIN vs. QUOT: 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 Quotient Technology (QUOT - Free Report) . 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Donnelley Financial Solutions is sporting a Zacks Rank of #2 (Buy), while Quotient Technology has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DFIN is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
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.
DFIN currently has a forward P/E ratio of 8.01, while QUOT has a forward P/E of 145.29. We also note that DFIN has a PEG ratio of 6.26. 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. QUOT currently has a PEG ratio of 7.26.
Another notable valuation metric for DFIN is its P/B ratio of 1.33. 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, QUOT has a P/B of 3.15.
These metrics, and several others, help DFIN earn a Value grade of A, while QUOT has been given a Value grade of F.
DFIN sticks out from QUOT in both our Zacks Rank and Style Scores models, so value investors will likely feel that DFIN is the better option right now.