Investors with an interest in Computer - Software stocks have likely encountered both Verint Systems (VRNT) and Intuit (INTU). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Verint Systems has a Zacks Rank of #1 (Strong Buy), while Intuit has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that VRNT has an improving earnings outlook. 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 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.

VRNT currently has a forward P/E ratio of 7.99, while INTU has a forward P/E of 31.17. We also note that VRNT has a PEG ratio of 0.67. 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. INTU currently has a PEG ratio of 2.16.

Another notable valuation metric for VRNT is its P/B ratio of 1.77. 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, INTU has a P/B of 9.27.

These are just a few of the metrics contributing to VRNT's Value grade of B and INTU's Value grade of F.

VRNT sticks out from INTU in both our Zacks Rank and Style Scores models, so value investors will likely feel that VRNT is the better option right now.

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Verint Systems Inc. (VRNT) : Free Stock Analysis Report

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