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JCOM vs. CRWD: Which Stock Should Value Investors Buy Now?

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Investors interested in stocks from the Internet - Software sector have probably already heard of j2 Global and CrowdStrike Holdings (CRWD - 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.

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 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.

Both j2 Global and CrowdStrike Holdings 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 factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JCOM currently has a forward P/E ratio of 12.90, while CRWD has a forward P/E of 526.65. We also note that JCOM has a PEG ratio of 1.61. 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. CRWD currently has a PEG ratio of 21.07.

Another notable valuation metric for JCOM is its P/B ratio of 4.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, CRWD has a P/B of 52.84.

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

Both JCOM and CRWD 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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