GFN or WNS: Which Is the Better Value Stock Right Now?
Investors with an interest in Business - Services stocks have likely encountered both General Finance (GFN) and WNS Holdings Limited (WNS). 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 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.
General Finance has a Zacks Rank of #2 (Buy), while WNS Holdings Limited has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that GFN has an improving earnings outlook. However, value investors will care about much more than just this.
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 grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GFN currently has a forward P/E ratio of 21.52, while WNS has a forward P/E of 27.83. We also note that GFN has a PEG ratio of 1.79. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WNS currently has a PEG ratio of 3.58.
Another notable valuation metric for GFN is its P/B ratio of 1.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, WNS has a P/B of 5.27.
Based on these metrics and many more, GFN holds a Value grade of B, while WNS has a Value grade of D.
GFN sticks out from WNS in both our Zacks Rank and Style Scores models, so value investors will likely feel that GFN is the better option right now.
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General Finance Corporation (GFN) : Free Stock Analysis Report
WNS Holdings Limited (WNS) : Free Stock Analysis Report
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