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BMBL vs. SMAR: Which Stock Is the Better Value Option?

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Investors with an interest in Internet - Software stocks have likely encountered both Bumble Inc. (BMBL - Free Report) and Smartsheet (SMAR - 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.

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.

Bumble Inc. and Smartsheet are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.

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.

BMBL currently has a forward P/E ratio of 13.65, while SMAR has a forward P/E of 37.63. We also note that BMBL has a PEG ratio of 0.27. 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. SMAR currently has a PEG ratio of 1.31.

Another notable valuation metric for BMBL is its P/B ratio of 0.68. 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, SMAR has a P/B of 9.37.

Based on these metrics and many more, BMBL holds a Value grade of A, while SMAR has a Value grade of F.

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


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