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

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Investors with an interest in Internet - Software stocks have likely encountered both OneSpan (OSPN - Free Report) and Coupa Software, Inc. . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both OneSpan and Coupa Software, Inc. are holding a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

OSPN currently has a forward P/E ratio of 34.10, while COUP has a forward P/E of 510.69. We also note that OSPN has a PEG ratio of 3.41. 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. COUP currently has a PEG ratio of 17.85.

Another notable valuation metric for OSPN is its P/B ratio of 2.47. 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 24.44.

These metrics, and several others, help OSPN earn a Value grade of B, while COUP has been given a Value grade of F.

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


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