CNXC vs. WNS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Business - Services stocks have likely encountered both Concentrix Corporation (CNXC) and WNS Holdings Limited (WNS). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Concentrix Corporation has a Zacks Rank of #2 (Buy), while WNS Holdings Limited has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that CNXC likely has seen a stronger improvement to its earnings outlook than WNS has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CNXC currently has a forward P/E ratio of 16.80, while WNS has a forward P/E of 23.80. We also note that CNXC has a PEG ratio of 0.81. 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. WNS currently has a PEG ratio of 3.14.
Another notable valuation metric for CNXC is its P/B ratio of 3.24. 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, WNS has a P/B of 5.20.
These are just a few of the metrics contributing to CNXC's Value grade of B and WNS's Value grade of C.
CNXC has seen stronger estimate revision activity and sports more attractive valuation metrics than WNS, so it seems like value investors will conclude that CNXC is the superior option right now.
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Concentrix Corporation (CNXC) : Free Stock Analysis Report
WNS Holdings Limited (WNS) : Free Stock Analysis Report
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