ASGN vs. FICO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Computers - IT Services sector might want to consider either ASGN Inc (ASGN) or Fair Isaac (FICO). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, ASGN Inc has a Zacks Rank of #2 (Buy), while Fair Isaac has a Zacks Rank of #4 (Sell). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ASGN has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ASGN currently has a forward P/E ratio of 15.83, while FICO has a forward P/E of 30.06. We also note that ASGN has a PEG ratio of 1.34. 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. FICO currently has a PEG ratio of 3.01.
Another notable valuation metric for ASGN is its P/B ratio of 3.21. 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, FICO has a P/B of 21.81.
These metrics, and several others, help ASGN earn a Value grade of B, while FICO has been given a Value grade of F.
ASGN sticks out from FICO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASGN is the better option right now.
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ASGN Incorporated (ASGN) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
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