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AUDC vs. ANET: Which Stock Is the Better Value Option?
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Investors with an interest in Communication - Components stocks have likely encountered both AudioCodes (AUDC - Free Report) and Arista Networks (ANET - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AudioCodes has a Zacks Rank of #1 (Strong Buy), while Arista Networks has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that AUDC likely has seen a stronger improvement to its earnings outlook than ANET has recently. But this is just one factor that value investors are interested in.
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.
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.
AUDC currently has a forward P/E ratio of 13.23, while ANET has a forward P/E of 30.19. We also note that AUDC has a PEG ratio of 1.47. 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. ANET currently has a PEG ratio of 1.73.
Another notable valuation metric for AUDC is its P/B ratio of 3.27. 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, ANET has a P/B of 9.10.
These metrics, and several others, help AUDC earn a Value grade of B, while ANET has been given a Value grade of D.
AUDC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AUDC is likely the superior value option right now.
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AUDC vs. ANET: Which Stock Is the Better Value Option?
Investors with an interest in Communication - Components stocks have likely encountered both AudioCodes (AUDC - Free Report) and Arista Networks (ANET - 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
AudioCodes has a Zacks Rank of #1 (Strong Buy), while Arista Networks has a Zacks Rank of #2 (Buy) right now. Investors should feel comfortable knowing that AUDC likely has seen a stronger improvement to its earnings outlook than ANET has recently. But this is just one factor that value investors are interested in.
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.
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.
AUDC currently has a forward P/E ratio of 13.23, while ANET has a forward P/E of 30.19. We also note that AUDC has a PEG ratio of 1.47. 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. ANET currently has a PEG ratio of 1.73.
Another notable valuation metric for AUDC is its P/B ratio of 3.27. 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, ANET has a P/B of 9.10.
These metrics, and several others, help AUDC earn a Value grade of B, while ANET has been given a Value grade of D.
AUDC is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that AUDC is likely the superior value option right now.