Investors interested in Internet - Software stocks are likely familiar with 8x8 (EGHT) and Smartsheet (SMAR). But which of these two stocks presents investors with the better value opportunity right now? 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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

8x8 has a Zacks Rank of #1 (Strong Buy), while Smartsheet has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that EGHT likely has seen a stronger improvement to its earnings outlook than SMAR has recently. However, value investors will care about much more than just this.

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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

EGHT currently has a forward P/E ratio of 8.57, while SMAR has a forward P/E of 40.26. We also note that EGHT has a PEG ratio of 0.74. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SMAR currently has a PEG ratio of 1.28.

Another notable valuation metric for EGHT is its P/B ratio of 3.35. 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, SMAR has a P/B of 11.58.

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

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

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