Yahoo Finance CLVT vs. INFA: Which Stock Is the Better Value Option?
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 presents investors with the better value opportunity right now? 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Clarivate PLC is sporting a Zacks Rank of #2 (Buy), while Informatica Inc. has a Zacks Rank of #5 (Strong Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CLVT has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 10.23, while INFA has a forward P/E of 24. We also note that CLVT has a PEG ratio of 0.78. 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. INFA currently has a PEG ratio of 6.47.
Another notable valuation metric for CLVT is its P/B ratio of 1.02. 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 2.48.
These are just a few of the metrics contributing to CLVT's Value grade of B and INFA's Value grade of F.
CLVT is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that CLVT is likely the superior value option right now.
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Clarivate PLC (CLVT) : Free Stock Analysis Report
Informatica Inc. (INFA) : Free Stock Analysis Report
