Investors interested in Consulting Services stocks are likely familiar with CoreLogic (CLGX) and Accenture (ACN). But which of these two stocks presents investors with the better value opportunity right now? 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.
Right now, both CoreLogic and Accenture are sporting a Zacks Rank of # 2 (Buy). 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 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.
CLGX currently has a forward P/E ratio of 15.77, while ACN has a forward P/E of 26.95. We also note that CLGX has a PEG ratio of 1.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ACN currently has a PEG ratio of 2.61.
Another notable valuation metric for CLGX is its P/B ratio of 3.66. 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, ACN has a P/B of 8.59.
Based on these metrics and many more, CLGX holds a Value grade of A, while ACN has a Value grade of C.
Both CLGX and ACN are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CLGX is the superior value option right now.
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CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
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