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GFN vs. WNS: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Business - Services stocks have likely encountered both General Finance and WNS Holdings Limited (WNS - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, General Finance is sporting a Zacks Rank of #2 (Buy), while WNS Holdings Limited has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GFN likely has seen a stronger improvement to its earnings outlook than WNS has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
GFN currently has a forward P/E ratio of 26.09, while WNS has a forward P/E of 29.13. We also note that GFN has a PEG ratio of 2.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WNS currently has a PEG ratio of 4.30.
Another notable valuation metric for GFN is its P/B ratio of 1.91. 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, WNS has a P/B of 5.28.
These metrics, and several others, help GFN earn a Value grade of A, while WNS has been given a Value grade of C.
GFN 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 GFN is likely the superior value option right now.
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GFN vs. WNS: Which Stock Should Value Investors Buy Now?
Investors with an interest in Business - Services stocks have likely encountered both General Finance and WNS Holdings Limited (WNS - Free Report) . 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, General Finance is sporting a Zacks Rank of #2 (Buy), while WNS Holdings Limited has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that GFN likely has seen a stronger improvement to its earnings outlook than WNS has recently. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their 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.
GFN currently has a forward P/E ratio of 26.09, while WNS has a forward P/E of 29.13. We also note that GFN has a PEG ratio of 2.17. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WNS currently has a PEG ratio of 4.30.
Another notable valuation metric for GFN is its P/B ratio of 1.91. 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, WNS has a P/B of 5.28.
These metrics, and several others, help GFN earn a Value grade of A, while WNS has been given a Value grade of C.
GFN 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 GFN is likely the superior value option right now.