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JCOM vs. CRWD: Which Stock Is the Better Value Option?

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·2 min read
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Investors interested in Internet - Software stocks are likely familiar with j2 Global (JCOM) and CrowdStrike Holdings (CRWD). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

j2 Global and CrowdStrike Holdings are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JCOM is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JCOM currently has a forward P/E ratio of 11.61, while CRWD has a forward P/E of 2,269.44. We also note that JCOM has a PEG ratio of 1.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CRWD currently has a PEG ratio of 90.78.

Another notable valuation metric for JCOM is its P/B ratio of 3.72. 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, CRWD has a P/B of 39.30.

Based on these metrics and many more, JCOM holds a Value grade of A, while CRWD has a Value grade of F.

JCOM stands above CRWD thanks to its solid earnings outlook, and based on these valuation figures, we also feel that JCOM is the superior value 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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