Yahoo Finance NICE vs. BL: Which Stock Is the Better Value Option?
Investors interested in stocks from the Internet - Software sector have probably already heard of Nice (NICE) 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.
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.
Nice has a Zacks Rank of #2 (Buy), while BlackLine has a Zacks Rank of #3 (Hold) right now. This means that NICE's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
NICE currently has a forward P/E ratio of 16.12, while BL has a forward P/E of 21.63. We also note that NICE has a PEG ratio of 1.10. 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. BL currently has a PEG ratio of 2.73.
Another notable valuation metric for NICE is its P/B ratio of 3.12. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BL has a P/B of 10.42.
These metrics, and several others, help NICE earn a Value grade of B, while BL has been given a Value grade of D.
NICE has seen stronger estimate revision activity and sports more attractive valuation metrics than BL, so it seems like value investors will conclude that NICE is the superior option right now.
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Nice (NICE) : Free Stock Analysis Report
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