IKTSY or FDS: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Business - Information Services sector might want to consider either INTERTEK GP (IKTSY) or FactSet Research (FDS). But which of these two stocks presents investors with the better value opportunity right now? 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
INTERTEK GP has a Zacks Rank of #2 (Buy), while FactSet Research has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IKTSY is likely seeing its earnings outlook improve to a greater extent. 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.
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.
IKTSY currently has a forward P/E ratio of 18.37, while FDS has a forward P/E of 28.73. We also note that IKTSY has a PEG ratio of 2.52. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FDS currently has a PEG ratio of 2.77.
Another notable valuation metric for IKTSY is its P/B ratio of 5.17. 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, FDS has a P/B of 10.84.
These metrics, and several others, help IKTSY earn a Value grade of B, while FDS has been given a Value grade of D.
IKTSY is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that IKTSY is likely the superior value option right now.
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INTERTEK GP (IKTSY) : Free Stock Analysis Report
FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
