Yahoo Finance META vs. BL: Which Stock Should Value Investors Buy Now?
Investors with an interest in Internet - Software stocks have likely encountered both Meta Platforms (META) and BlackLine (BL). But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Meta Platforms and BlackLine are both sporting a Zacks Rank of # 2 (Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. 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.
META currently has a forward P/E ratio of 17.83, while BL has a forward P/E of 77.59. We also note that META has a PEG ratio of 1.71. 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. BL currently has a PEG ratio of 2.10.
Another notable valuation metric for META is its P/B ratio of 3.55. 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, BL has a P/B of 54.33.
These are just a few of the metrics contributing to META's Value grade of B and BL's Value grade of F.
Both META and BL are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that META is the superior value option right now.
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
BlackLine (BL) : Free Stock Analysis Report
