FUTU or BRZE: Which Is the Better Value Stock Right Now?

Zacks
26 Nov 2024

Investors interested in Technology Services stocks are likely familiar with Futu Holdings Limited Sponsored ADR (FUTU) and Braze, Inc. (BRZE). 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.

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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Futu Holdings Limited Sponsored ADR and Braze, Inc. are both sporting a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

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.

FUTU currently has a forward P/E ratio of 17.51, while BRZE has a forward P/E of 595.54. We also note that FUTU has a PEG ratio of 0.86. 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. BRZE currently has a PEG ratio of 19.85.

Another notable valuation metric for FUTU is its P/B ratio of 3.17. 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, BRZE has a P/B of 8.76.

These metrics, and several others, help FUTU earn a Value grade of B, while BRZE has been given a Value grade of F.

Both FUTU and BRZE are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that FUTU is the superior value option right now.

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Braze, Inc. (BRZE) : Free Stock Analysis Report

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