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ETWO vs. INFA: Which Stock Should Value Investors Buy Now?
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Investors interested in Internet - Software stocks are likely familiar with E2open Parent Holdings, Inc. (ETWO - Free Report) and Informatica Inc. (INFA - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, E2open Parent Holdings, Inc. has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ETWO 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.
ETWO currently has a forward P/E ratio of 21.79, while INFA has a forward P/E of 25.29. We also note that ETWO has a PEG ratio of 1.31. 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. INFA currently has a PEG ratio of 3.28.
Another notable valuation metric for ETWO is its P/B ratio of 0.89. 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, INFA has a P/B of 3.66.
These are just a few of the metrics contributing to ETWO's Value grade of B and INFA's Value grade of D.
ETWO stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETWO is the superior value option right now.
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ETWO vs. INFA: Which Stock Should Value Investors Buy Now?
Investors interested in Internet - Software stocks are likely familiar with E2open Parent Holdings, Inc. (ETWO - Free Report) and Informatica Inc. (INFA - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, E2open Parent Holdings, Inc. has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ETWO 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.
ETWO currently has a forward P/E ratio of 21.79, while INFA has a forward P/E of 25.29. We also note that ETWO has a PEG ratio of 1.31. 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. INFA currently has a PEG ratio of 3.28.
Another notable valuation metric for ETWO is its P/B ratio of 0.89. 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, INFA has a P/B of 3.66.
These are just a few of the metrics contributing to ETWO's Value grade of B and INFA's Value grade of D.
ETWO stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ETWO is the superior value option right now.