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PRFT or FORR: Which Is the Better Value Stock Right Now?

Zacks Equity Research
·2 min read

Investors looking for stocks in the Computer - Services sector might want to consider either Perficient (PRFT) or Forrester Research (FORR). But which of these two stocks presents investors with the better value opportunity right now? Let's 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.

Currently, both Perficient and Forrester Research are holding a Zacks Rank of # 2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is only part of the picture 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.

PRFT currently has a forward P/E ratio of 18.50, while FORR has a forward P/E of 29.58. We also note that PRFT has a PEG ratio of 1.54. 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. FORR currently has a PEG ratio of 2.46.

Another notable valuation metric for PRFT is its P/B ratio of 3.42. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, FORR has a P/B of 4.11.

These metrics, and several others, help PRFT earn a Value grade of B, while FORR has been given a Value grade of C.

Both PRFT and FORR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that PRFT is the superior value option right now.


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Perficient, Inc. (PRFT) : Free Stock Analysis Report
 
Forrester Research, Inc. (FORR) : Free Stock Analysis Report
 
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Zacks Investment Research