PRGS vs. INTU: Which Stock Is the Better Value Option?

Core Viewpoint - The article compares Progress Software (PRGS) and Intuit (INTU) to determine which stock is a better undervalued investment opportunity for investors interested in Computer - Software stocks [1]. Group 1: Zacks Rank and Earnings Estimates - Progress Software has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision activity, while Intuit has a Zacks Rank of 4 (Sell), suggesting a less favorable analyst outlook [3]. - The Zacks Rank emphasizes earnings estimates and revisions, which are critical for investors assessing stock potential [2]. Group 2: Valuation Metrics - PRGS has a forward P/E ratio of 7.35, significantly lower than INTU's forward P/E of 22.69, indicating that PRGS may be undervalued relative to INTU [5]. - The PEG ratio for PRGS is 1.47, while INTU's PEG ratio is 1.60, suggesting that PRGS offers better value when considering expected earnings growth [5]. - PRGS has a P/B ratio of 3.83 compared to INTU's P/B of 7.56, further indicating that PRGS is more attractively valued based on market value versus book value [6]. Group 3: Value Grades - Based on various valuation metrics, PRGS holds a Value grade of A, while INTU has a Value grade of D, reinforcing the notion that PRGS is the superior choice for value investors at this time [6].