CLGX vs. IT: Which Stock Is the Better Value Option?
Investors interested in stocks from the Consulting Services sector have probably already heard of CoreLogic (CLGX) and Gartner (IT). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, CoreLogic is sporting a Zacks Rank of #2 (Buy), while Gartner 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 CLGX has an improving earnings outlook. However, value investors will care about much more than just this.
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.
CLGX currently has a forward P/E ratio of 15.90, while IT has a forward P/E of 38.06. We also note that CLGX has a PEG ratio of 1.33. 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. IT currently has a PEG ratio of 3.81.
Another notable valuation metric for CLGX is its P/B ratio of 3.93. 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, IT has a P/B of 11.66.
These are just a few of the metrics contributing to CLGX's Value grade of B and IT's Value grade of D.
CLGX sticks out from IT in both our Zacks Rank and Style Scores models, so value investors will likely feel that CLGX is the better option right now.
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CoreLogic, Inc. (CLGX) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
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