CLMB vs. WDH: Which Stock Is the Better Value Option?
Investors interested in Technology Services stocks are likely familiar with Climb Global Solutions (CLMB) and Waterdrop Inc. Unsponsored ADR (WDH). 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Climb Global Solutions is sporting a Zacks Rank of #1 (Strong Buy), while Waterdrop Inc. Unsponsored ADR has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CLMB has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
CLMB currently has a forward P/E ratio of 11.88, while WDH has a forward P/E of 20.55. We also note that CLMB has a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WDH currently has a PEG ratio of 17.12.
Another notable valuation metric for CLMB is its P/B ratio of 2.62. 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, WDH has a P/B of 13.57.
Based on these metrics and many more, CLMB holds a Value grade of A, while WDH has a Value grade of D.
CLMB 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 CLMB is likely the superior value option right now.
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Climb Global Solutions, Inc. (CLMB) : Free Stock Analysis Report
Waterdrop Inc. Unsponsored ADR (WDH) : Free Stock Analysis Report
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