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

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Investors looking for stocks in the Internet - Software sector might want to consider either j2 Global or COUPA SOFTWARE . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Both j2 Global and COUPA SOFTWARE have a Zacks Rank of # 2 (Buy) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks 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 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.

JCOM currently has a forward P/E ratio of 9.88, while COUP has a forward P/E of 379.79. We also note that JCOM has a PEG ratio of 1.24. 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. COUP currently has a PEG ratio of 13.27.

Another notable valuation metric for JCOM is its P/B ratio of 2.73. 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, COUP has a P/B of 18.81.

These are just a few of the metrics contributing to JCOM's Value grade of B and COUP's Value grade of F.

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

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