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MEET or NICE: Which Is the Better Value Stock Right Now?

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

Currently, Meet Group has a Zacks Rank of #2 (Buy), while Nice has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that MEET likely has seen a stronger improvement to its earnings outlook than NICE has recently. But this is only part of the picture for value investors.

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.

MEET currently has a forward P/E ratio of 9.56, while NICE has a forward P/E of 27.57. We also note that MEET has a PEG ratio of 0.40. 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. NICE currently has a PEG ratio of 2.76.

Another notable valuation metric for MEET is its P/B ratio of 2.17. 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, NICE has a P/B of 4.26.

These are just a few of the metrics contributing to MEET's Value grade of B and NICE's Value grade of D.

MEET is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that MEET is likely the superior value option right now.


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