HSON or EXLS: Which Is the Better Value Stock Right Now?
Investors interested in Outsourcing stocks are likely familiar with Hudson Global (HSON) and ExlService Holdings (EXLS). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Hudson Global and ExlService Holdings have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have 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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HSON currently has a forward P/E ratio of 7.01, while EXLS has a forward P/E of 24.76. We also note that HSON has a PEG ratio of 0.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EXLS currently has a PEG ratio of 1.70.
Another notable valuation metric for HSON is its P/B ratio of 1.32. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EXLS has a P/B of 7.31.
These are just a few of the metrics contributing to HSON's Value grade of A and EXLS's Value grade of C.
Both HSON and EXLS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HSON is the superior value option right now.
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Hudson Global, Inc. (HSON) : Free Stock Analysis Report
ExlService Holdings, Inc. (EXLS) : Free Stock Analysis Report
