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CXM or IBTA: Which Is the Better Value Stock Right Now?

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Investors interested in Technology Services stocks are likely familiar with Sprinklr (CXM - Free Report) and Ibotta (IBTA - 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, Sprinklr is sporting a Zacks Rank of #2 (Buy), while Ibotta has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that CXM likely has seen a stronger improvement to its earnings outlook than IBTA has recently. However, value investors will care about much more than just this.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies 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.

CXM currently has a forward P/E ratio of 23.78, while IBTA has a forward P/E of 95.80. We also note that CXM has a PEG ratio of 0.79. 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. IBTA currently has a PEG ratio of 3.14.

Another notable valuation metric for CXM is its P/B ratio of 4.24. 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, IBTA has a P/B of 45.33.

These metrics, and several others, help CXM earn a Value grade of B, while IBTA has been given a Value grade of C.

CXM has seen stronger estimate revision activity and sports more attractive valuation metrics than IBTA, so it seems like value investors will conclude that CXM is the superior option right now.


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