Back to top

Image: Bigstock

VOLT or HHR: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors looking for stocks in the Business - Services sector might want to consider either Volt Information Sciences or HeadHunter Group PLC Sponsored ADR (HHR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, both Volt Information Sciences and HeadHunter Group PLC Sponsored ADR are sporting a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

VOLT currently has a forward P/E ratio of 18.08, while HHR has a forward P/E of 41.13. We also note that VOLT has a PEG ratio of 1.21. 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. HHR currently has a PEG ratio of 1.45.

Another notable valuation metric for VOLT is its P/B ratio of 3.37. 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, HHR has a P/B of 35.39.

Based on these metrics and many more, VOLT holds a Value grade of B, while HHR has a Value grade of D.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


HeadHunter Group PLC Sponsored ADR (HHR) - free report >>

Published in