CNXC or WNS: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Business - Services sector have probably already heard of Concentrix Corporation (CNXC) and WNS Holdings Limited (WNS). But which of these two companies is the best option for those looking for undervalued stocks? 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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, both Concentrix Corporation and WNS Holdings Limited are sporting a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one factor that value investors are interested in.
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.
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.
CNXC currently has a forward P/E ratio of 16.13, while WNS has a forward P/E of 23.86. We also note that CNXC has a PEG ratio of 1.04. 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. WNS currently has a PEG ratio of 1.57.
Another notable valuation metric for CNXC is its P/B ratio of 3.93. 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 5.48.
These are just a few of the metrics contributing to CNXC's Value grade of B and WNS's Value grade of D.
Both CNXC and WNS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that CNXC is the superior value 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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