JOB or NSP: Which Is the Better Value Stock Right Now?
Investors with an interest in Staffing Firms stocks have likely encountered both GEE Group Inc. (JOB) and Insperity, Inc. (NSP). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
GEE Group Inc. has a Zacks Rank of #1 (Strong Buy), while Insperity, Inc. has a Zacks Rank of #5 (Strong Sell) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that JOB 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.
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.
JOB currently has a forward P/E ratio of 5.80, while NSP has a forward P/E of 20.27. We also note that JOB has a PEG ratio of 0.39. 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. NSP currently has a PEG ratio of 1.35.
Another notable valuation metric for JOB is its P/B ratio of 0.60. 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, NSP has a P/B of 28.26.
These are just a few of the metrics contributing to JOB's Value grade of A and NSP's Value grade of C.
JOB 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 JOB is likely the superior value option right now.
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GEE Group Inc. (JOB) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
