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GPX or UTI: Which Is the Better Value Stock Right Now?

Investors interested in stocks from the Schools sector have probably already heard of GP Strategies (GPX) and Universal Technical Institute (UTI). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.

Currently, GP Strategies has a Zacks Rank of #2 (Buy), while Universal Technical Institute has a Zacks Rank of #4 (Sell). This means that GPX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

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.

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.

GPX currently has a forward P/E ratio of 81.17, while UTI has a forward P/E of 187.38. We also note that GPX has a PEG ratio of 5.41. 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. UTI currently has a PEG ratio of 12.49.

Another notable valuation metric for GPX is its P/B ratio of 0.80. 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, UTI has a P/B of 2.59.

These metrics, and several others, help GPX earn a Value grade of B, while UTI has been given a Value grade of D.

GPX stands above UTI thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GPX is the superior value option right now.


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GP Strategies Corporation (GPX) : Free Stock Analysis Report
 
Universal Technical Institute Inc (UTI) : Free Stock Analysis Report
 
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Zacks Investment Research

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