META vs. ENFN: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Software stocks have likely encountered both Meta Platforms (META) and Enfusion, Inc. (ENFN). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Meta Platforms and Enfusion, Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that META's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
META currently has a forward P/E ratio of 23.90, while ENFN has a forward P/E of 58.30. We also note that META has a PEG ratio of 1.09. 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. ENFN currently has a PEG ratio of 1.14.
Another notable valuation metric for META is its P/B ratio of 5.86. 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, ENFN has a P/B of 12.77.
These metrics, and several others, help META earn a Value grade of B, while ENFN has been given a Value grade of D.
META has seen stronger estimate revision activity and sports more attractive valuation metrics than ENFN, so it seems like value investors will conclude that META is the superior option right now.
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
Enfusion, Inc. (ENFN) : Free Stock Analysis Report
