How to Pick the Odd One Out Among Value Stocks: Comparing ODD and ADYEY

When screening the Internet-Software sector for potential investments, two names frequently appear in value-focused discussions: Oddity Tech (ODD) and Adyen N.V. Unsponsored ADR (ADYEY). But which of these stocks truly stands out as the odd one out—the superior choice? The answer requires examining multiple dimensions of valuation through a strategic framework that serious investors rely on.

Understanding the Value Investor’s Playbook

The foundation of any solid stock evaluation begins with understanding how professional value investors distinguish opportunities from traps. This process typically involves two complementary approaches: analyzing earnings momentum through systems like the Zacks Rank, and dissecting fundamental valuation metrics through comprehensive scoring models.

The Zacks Rank specifically targets companies experiencing positive earnings estimate revisions—a key signal that market expectations are shifting favorably. Alongside this, valuation scoring systems examine traditional metrics that have proven effective for decades: the Price-to-Earnings ratio, Price-to-Sales ratio, earnings yields, cash flow measurements, and similar established indicators.

Right now, ODD carries a Zacks Rank of #2 (Buy), suggesting improving earnings visibility, while ADYEY holds a #4 (Sell) ranking. This already hints at which stock may warrant closer inspection from a growth-momentum perspective.

Dissecting the Valuation Metrics: Which One Stands Out?

Beyond earnings trends, the numbers reveal a starker picture when examining specific valuation yardsticks. Consider the forward Price-to-Earnings ratio, perhaps the most widely tracked metric among value professionals. ODD trades at a forward P/E of 13.87, whereas ADYEY commands 32.33—a significant gap that immediately signals relative affordability.

The PEG ratio, which incorporates expected growth rates into the P/E calculation, paints a similar story. ODD’s PEG registers at 1.16, compared to ADYEY’s 1.76. This metric helps investors determine whether they’re paying a reasonable price relative to future growth potential.

Perhaps most revealing is the Price-to-Book ratio, which compares market valuation to underlying asset value. ODD trades at a P/B of 4.91, while ADYEY’s P/B reaches 9.06. For value hunters seeking companies trading closer to their intrinsic book value, this difference matters substantially.

These metrics collectively earned ODD a Value Grade of B from comprehensive scoring systems, while ADYEY received an F. The choice of which stock stands out as the better value opportunity appears increasingly clear.

The Investment Takeaway

When multiple evaluation frameworks align—whether through earnings revision momentum, fundamental valuation ratios, or value-focused scoring systems—they typically reinforce the same conclusion. ODD emerges as the odd one out here, but in the favorable sense for value-oriented portfolios. It offers superior metrics across nearly every dimension that matters to disciplined investors seeking undervalued opportunities.

This comparative framework can serve as a template for evaluating similar investment decisions across different sectors, helping you identify which stocks truly deserve a closer look.