Investors looking for stocks in the Internet - Software sector might want to consider either MiX Telematics Limited (MIXT) or Nice (NICE). 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.
MiX Telematics Limited has a Zacks Rank of #2 (Buy), while Nice has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that MIXT 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 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.
MIXT currently has a forward P/E ratio of 18.82, while NICE has a forward P/E of 28.32. We also note that MIXT has a PEG ratio of 0.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NICE currently has a PEG ratio of 2.79.
Another notable valuation metric for MIXT is its P/B ratio of 2.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NICE has a P/B of 4.42.
Based on these metrics and many more, MIXT holds a Value grade of A, while NICE has a Value grade of D.
MIXT has seen stronger estimate revision activity and sports more attractive valuation metrics than NICE, so it seems like value investors will conclude that MIXT is the superior option right now.
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MiX Telematics Limited (MIXT): Free Stock Analysis Report
Nice Ltd. (NICE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.