GTM or FFIV: Which Is the Better Value Stock Right Now?

Core Viewpoint - Investors in the Internet - Software sector should consider ZoomInfo (GTM) and F5 Networks (FFIV) for potential value opportunities, with GTM currently presenting a more favorable outlook [1]. Group 1: Zacks Rank and Analyst Outlook - GTM has a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions, while FFIV has a Zacks Rank of 5 (Strong Sell), suggesting a less favorable analyst outlook [3]. - The improving analyst outlook for GTM makes it a more attractive option for investors [3]. Group 2: Valuation Metrics - GTM has a forward P/E ratio of 11.63, significantly lower than FFIV's forward P/E of 16.02, indicating GTM may be undervalued [5]. - GTM's PEG ratio is 1.64, while FFIV's PEG ratio is much higher at 5.96, further suggesting GTM's better value proposition [5]. - GTM's P/B ratio stands at 2.43 compared to FFIV's 3.86, reinforcing the notion that GTM is more favorably valued [6]. Group 3: Value Grades - GTM has earned a Value grade of B, while FFIV has received a Value grade of F, highlighting the significant difference in their valuation attractiveness [6]. - The combination of Zacks Rank and Style Scores indicates that GTM is the better option for value investors at this time [6].