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DOX or DT: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Computers - IT Services sector have probably already heard of Amdocs (DOX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Amdocs and Dynatrace 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 DOX has 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.
DOX currently has a forward P/E ratio of 15.53, while DT has a forward P/E of 54.52. We also note that DOX has a PEG ratio of 1.55. 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. DT currently has a PEG ratio of 4.18.
Another notable valuation metric for DOX is its P/B ratio of 2.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 9.16.
Based on these metrics and many more, DOX holds a Value grade of B, while DT has a Value grade of D.
DOX stands above DT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOX is the superior value option right now.
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DOX or DT: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Computers - IT Services sector have probably already heard of Amdocs (DOX - Free Report) and Dynatrace (DT - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Amdocs and Dynatrace 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 DOX has 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.
DOX currently has a forward P/E ratio of 15.53, while DT has a forward P/E of 54.52. We also note that DOX has a PEG ratio of 1.55. 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. DT currently has a PEG ratio of 4.18.
Another notable valuation metric for DOX is its P/B ratio of 2.96. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, DT has a P/B of 9.16.
Based on these metrics and many more, DOX holds a Value grade of B, while DT has a Value grade of D.
DOX stands above DT thanks to its solid earnings outlook, and based on these valuation figures, we also feel that DOX is the superior value option right now.