VRNT or SNPS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Computer - Software sector have probably already heard of Verint Systems (VRNT) and Synopsys (SNPS). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, Verint Systems is sporting a Zacks Rank of #2 (Buy), while Synopsys has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VRNT has an improving earnings outlook. But this is only part of the picture 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.
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.
VRNT currently has a forward P/E ratio of 10.23, while SNPS has a forward P/E of 37.18. We also note that VRNT has a PEG ratio of 0.85. 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. SNPS currently has a PEG ratio of 2.18.
Another notable valuation metric for VRNT is its P/B ratio of 2.12. 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, SNPS has a P/B of 12.32.
Based on these metrics and many more, VRNT holds a Value grade of B, while SNPS has a Value grade of F.
VRNT sticks out from SNPS in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRNT is the better option right now.
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Verint Systems Inc. (VRNT) : Free Stock Analysis Report
Synopsys, Inc. (SNPS) : Free Stock Analysis Report
