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AMADY vs. BRZE: Which Stock Is the Better Value Option?

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Investors interested in stocks from the Technology Services sector have probably already heard of Amadeus IT Group SA Unsponsored ADR (AMADY - Free Report) and Braze, Inc. (BRZE - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Currently, both Amadeus IT Group SA Unsponsored ADR and Braze, Inc. are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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.

AMADY currently has a forward P/E ratio of 23.58, while BRZE has a forward P/E of 460.63. We also note that AMADY has a PEG ratio of 2.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BRZE currently has a PEG ratio of 15.35.

Another notable valuation metric for AMADY is its P/B ratio of 6.67. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BRZE has a P/B of 6.85.

These are just a few of the metrics contributing to AMADY's Value grade of B and BRZE's Value grade of F.

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


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Amadeus IT Group SA Unsponsored ADR (AMADY) - free report >>

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