Investors interested in Technology Services stocks are likely familiar with Blucora (BCOR) and Paymentus (PAY). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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.
Right now, Blucora is sporting a Zacks Rank of #2 (Buy), while Paymentus has a Zacks Rank of #3 (Hold). This means that BCOR's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
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.
BCOR currently has a forward P/E ratio of 11.28, while PAY has a forward P/E of 200.25. We also note that BCOR has a PEG ratio of 0.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAY currently has a PEG ratio of 5.74.
Another notable valuation metric for BCOR is its P/B ratio of 2.53. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PAY has a P/B of 3.34.
These are just a few of the metrics contributing to BCOR's Value grade of A and PAY's Value grade of D.
BCOR has seen stronger estimate revision activity and sports more attractive valuation metrics than PAY, so it seems like value investors will conclude that BCOR is the superior option right now.
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Blucora, Inc. (BCOR) : Free Stock Analysis Report
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