Yahoo Finance CLVT vs. INFA: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Internet - Software sector might want to consider either Clarivate PLC (CLVT) or Informatica Inc. (INFA). 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.
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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Clarivate PLC has a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #5 (Strong Sell) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that CLVT is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
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.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
CLVT currently has a forward P/E ratio of 9.27, while INFA has a forward P/E of 22.83. We also note that CLVT has a PEG ratio of 0.78. 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. INFA currently has a PEG ratio of 6.15.
Another notable valuation metric for CLVT is its P/B ratio of 0.92. 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, INFA has a P/B of 2.36.
These metrics, and several others, help CLVT earn a Value grade of B, while INFA has been given a Value grade of F.
CLVT stands above INFA thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CLVT is the superior value option right now.
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Clarivate PLC (CLVT) : Free Stock Analysis Report
Informatica Inc. (INFA) : Free Stock Analysis Report
