BCKIY vs. ALTR: Which Stock Is the Better Value Option?
Investors with an interest in Engineering - R and D Services stocks have likely encountered both Babcock International Group PLC (BCKIY) and Altair Engineering (ALTR). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Both Babcock International Group PLC and Altair Engineering have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
BCKIY currently has a forward P/E ratio of 14.22, while ALTR has a forward P/E of 69.44. We also note that BCKIY has a PEG ratio of 0.40. 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. ALTR currently has a PEG ratio of 5.79.
Another notable valuation metric for BCKIY is its P/B ratio of 7.25. 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, ALTR has a P/B of 10.01.
These are just a few of the metrics contributing to BCKIY's Value grade of A and ALTR's Value grade of F.
Both BCKIY and ALTR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that BCKIY is the superior value option right now.
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Babcock International Group PLC (BCKIY) : Free Stock Analysis Report
Altair Engineering Inc. (ALTR) : Free Stock Analysis Report
