CRAI vs. ACN: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Consulting Services sector might want to consider either CRA International (CRAI) or Accenture (ACN). But which of these two companies is the best option for those looking for undervalued stocks? 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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, CRA International is sporting a Zacks Rank of #2 (Buy), while Accenture 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 CRAI has an improving earnings outlook. But this is only part of the picture for value investors.
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 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.
CRAI currently has a forward P/E ratio of 18.44, while ACN has a forward P/E of 25.77. We also note that CRAI has a PEG ratio of 1.42. 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. ACN currently has a PEG ratio of 2.71.
Another notable valuation metric for CRAI is its P/B ratio of 3.50. 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, ACN has a P/B of 7.84.
Based on these metrics and many more, CRAI holds a Value grade of B, while ACN has a Value grade of D.
CRAI has seen stronger estimate revision activity and sports more attractive valuation metrics than ACN, so it seems like value investors will conclude that CRAI is the superior option right now.
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Charles River Associates (CRAI) : Free Stock Analysis Report
Accenture PLC (ACN) : Free Stock Analysis Report
