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ORCL or INTU: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Computer - Software sector might want to consider either Oracle (ORCL - Free Report) or Intuit (INTU - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Oracle and Intuit are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ORCL has an improving earnings outlook. However, value investors will care about much more than just this.
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.
ORCL currently has a forward P/E ratio of 13.67, while INTU has a forward P/E of 32.94. We also note that ORCL has a PEG ratio of 1.40. 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. INTU currently has a PEG ratio of 2.59.
Another notable valuation metric for ORCL is its P/B ratio of 11.23. 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, INTU has a P/B of 17.48.
Based on these metrics and many more, ORCL holds a Value grade of B, while INTU has a Value grade of D.
ORCL sticks out from INTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that ORCL is the better option right now.
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ORCL or INTU: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Computer - Software sector might want to consider either Oracle (ORCL - Free Report) or Intuit (INTU - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Oracle and Intuit are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ORCL has an improving earnings outlook. However, value investors will care about much more than just this.
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.
ORCL currently has a forward P/E ratio of 13.67, while INTU has a forward P/E of 32.94. We also note that ORCL has a PEG ratio of 1.40. 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. INTU currently has a PEG ratio of 2.59.
Another notable valuation metric for ORCL is its P/B ratio of 11.23. 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, INTU has a P/B of 17.48.
Based on these metrics and many more, ORCL holds a Value grade of B, while INTU has a Value grade of D.
ORCL sticks out from INTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that ORCL is the better option right now.