CVET vs. CRWD: Which Stock Is the Better Value Option?
Investors looking for stocks in the Internet - Software sector might want to consider either Covetrus (CVET) or CrowdStrike Holdings (CRWD). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Covetrus is sporting a Zacks Rank of #2 (Buy), while CrowdStrike Holdings has a Zacks Rank of #3 (Hold). This means that CVET's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
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 highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
CVET currently has a forward P/E ratio of 42.22, while CRWD has a forward P/E of 2,238.79. We also note that CVET has a PEG ratio of 1.34. 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. CRWD currently has a PEG ratio of 89.55.
Another notable valuation metric for CVET is its P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CRWD has a P/B of 39.29.
These are just a few of the metrics contributing to CVET's Value grade of B and CRWD's Value grade of F.
CVET has seen stronger estimate revision activity and sports more attractive valuation metrics than CRWD, so it seems like value investors will conclude that CVET is the superior option right now.
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Covetrus, Inc. (CVET) : Free Stock Analysis Report
CrowdStrike Holdings Inc. (CRWD) : Free Stock Analysis Report
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