ODD or SMAR: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Internet - Software sector have probably already heard of Oddity Tech (ODD) and Smartsheet (SMAR). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Oddity Tech has a Zacks Rank of #2 (Buy), while Smartsheet has a Zacks Rank of #3 (Hold) right now. This means that ODD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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 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.
ODD currently has a forward P/E ratio of 22.57, while SMAR has a forward P/E of 39.85. We also note that ODD has a PEG ratio of 1.13. 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. SMAR currently has a PEG ratio of 1.27.
Another notable valuation metric for ODD is its P/B ratio of 6.04. 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, SMAR has a P/B of 11.46.
Based on these metrics and many more, ODD holds a Value grade of B, while SMAR has a Value grade of D.
ODD 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 ODD is likely the superior value option right now.
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ODDITY Tech Ltd. (ODD) : Free Stock Analysis Report
Smartsheet (SMAR) : Free Stock Analysis Report