CACI or PRFT: Which Is the Better Value Stock Right Now?
Investors with an interest in Computer - Services stocks have likely encountered both CACI International (CACI) and Perficient (PRFT). 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.
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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, CACI International is sporting a Zacks Rank of #2 (Buy), while Perficient has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that CACI has an improving earnings outlook. However, value investors will care about much more than just this.
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.
CACI currently has a forward P/E ratio of 15.91, while PRFT has a forward P/E of 29.82. We also note that CACI has a PEG ratio of 1.21. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. PRFT currently has a PEG ratio of 2.13.
Another notable valuation metric for CACI is its P/B ratio of 2.50. 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, PRFT has a P/B of 7.56.
Based on these metrics and many more, CACI holds a Value grade of A, while PRFT has a Value grade of C.
CACI has seen stronger estimate revision activity and sports more attractive valuation metrics than PRFT, so it seems like value investors will conclude that CACI is the superior option right now.
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CACI International, Inc. (CACI) : Free Stock Analysis Report
Perficient, Inc. (PRFT) : Free Stock Analysis Report
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