JOB vs. NSP: Which Stock Is the Better Value Option?
Investors looking for stocks in the Staffing Firms sector might want to consider either GEE Group Inc. (JOB) or Insperity, Inc. (NSP). 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 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.
Right now, GEE Group Inc. is sporting a Zacks Rank of #1 (Strong Buy), while Insperity, Inc. has a Zacks Rank of #5 (Strong Sell). This means that JOB's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JOB currently has a forward P/E ratio of 5.85, while NSP has a forward P/E of 20.42. 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 1.36.
Another notable valuation metric for JOB is its P/B ratio of 0.61. 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, NSP has a P/B of 28.48.
These are just a few of the metrics contributing to JOB's Value grade of A and NSP's Value grade of C.
JOB has seen stronger estimate revision activity and sports more attractive valuation metrics than NSP, so it seems like value investors will conclude that JOB is the superior option right now.
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GEE Group Inc. (JOB) : Free Stock Analysis Report
Insperity, Inc. (NSP) : Free Stock Analysis Report
