JCOM or CRWD: Which Is the Better Value Stock Right Now?
Investors interested in Internet - Software stocks are likely familiar with j2 Global (JCOM) and CrowdStrike Holdings (CRWD). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, j2 Global is sporting a Zacks Rank of #2 (Buy), while CrowdStrike Holdings has a Zacks Rank of #4 (Sell). This means that JCOM's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. 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 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.
JCOM currently has a forward P/E ratio of 13.12, while CRWD has a forward P/E of 590.32. We also note that JCOM has a PEG ratio of 1.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CRWD currently has a PEG ratio of 23.61.
Another notable valuation metric for JCOM is its P/B ratio of 4.49. 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, CRWD has a P/B of 45.09.
Based on these metrics and many more, JCOM holds a Value grade of B, while CRWD has a Value grade of D.
JCOM sticks out from CRWD in both our Zacks Rank and Style Scores models, so value investors will likely feel that JCOM is the better option right now.
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j2 Global, Inc. (JCOM) : Free Stock Analysis Report
CrowdStrike Holdings Inc. (CRWD) : Free Stock Analysis Report
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