U.S. markets closed
  • S&P 500

    3,298.46
    +51.87 (+1.60%)
     
  • Dow 30

    27,173.96
    +358.52 (+1.34%)
     
  • Nasdaq

    10,913.56
    +241.29 (+2.26%)
     
  • Russell 2000

    1,474.91
    +23.09 (+1.59%)
     
  • Crude Oil

    40.04
    -0.27 (-0.67%)
     
  • Gold

    1,864.30
    -12.60 (-0.67%)
     
  • Silver

    22.99
    -0.21 (-0.91%)
     
  • EUR/USD

    1.1639
    -0.0037 (-0.31%)
     
  • 10-Yr Bond

    0.6590
    -0.0070 (-1.05%)
     
  • GBP/USD

    1.2744
    -0.0007 (-0.06%)
     
  • USD/JPY

    105.5590
    +0.1570 (+0.15%)
     
  • BTC-USD

    10,755.99
    -4.59 (-0.04%)
     
  • CMC Crypto 200

    220.92
    +3.09 (+1.42%)
     
  • FTSE 100

    5,842.67
    +19.89 (+0.34%)
     
  • Nikkei 225

    23,204.62
    +116.80 (+0.51%)
     

SSTK vs. TTGT: Which Stock Is the Better Value Option?

Zacks Equity Research

Investors interested in stocks from the Internet - Content sector have probably already heard of Shutterstock (SSTK) and TechTarget (TTGT). 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.

Shutterstock and TechTarget are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that SSTK likely has seen a stronger improvement to its earnings outlook than TTGT has recently. 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.

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.

SSTK currently has a forward P/E ratio of 39.97, while TTGT has a forward P/E of 40.89. We also note that SSTK has a PEG ratio of 1.67. 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. TTGT currently has a PEG ratio of 2.04.

Another notable valuation metric for SSTK is its P/B ratio of 5.94. 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, TTGT has a P/B of 7.37.

Based on these metrics and many more, SSTK holds a Value grade of B, while TTGT has a Value grade of D.

SSTK has seen stronger estimate revision activity and sports more attractive valuation metrics than TTGT, so it seems like value investors will conclude that SSTK is the superior option right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Shutterstock, Inc. (SSTK) : Free Stock Analysis Report
 
TechTarget, Inc. (TTGT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.