LOGM vs. MANT: Which Stock Should Value Investors Buy Now?
Investors with an interest in Computer - Services stocks have likely encountered both LogMein (LOGM) and ManTech International (MANT). 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.
LogMein has a Zacks Rank of #2 (Buy), while ManTech International has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LOGM has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
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 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.
LOGM currently has a forward P/E ratio of 17, while MANT has a forward P/E of 26.76. We also note that LOGM has a PEG ratio of 3.40. 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. MANT currently has a PEG ratio of 3.64.
Another notable valuation metric for LOGM is its P/B ratio of 1.54. 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, MANT has a P/B of 2.22.
These metrics, and several others, help LOGM earn a Value grade of B, while MANT has been given a Value grade of D.
LOGM sticks out from MANT in both our Zacks Rank and Style Scores models, so value investors will likely feel that LOGM is the better option right now.
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LogMein, Inc. (LOGM) : Free Stock Analysis Report
ManTech International Corporation (MANT) : Free Stock Analysis Report
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