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BGSF vs. WNS: Which Stock Should Value Investors Buy Now?

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Investors interested in Business - Services stocks are likely familiar with BGSF (BGSF - Free Report) and WNS Holdings Limited (WNS - Free Report) . 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 proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, BGSF 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 BGSF likely has seen a stronger improvement to its earnings outlook than WNS has recently. However, value investors will care about much more than just this.

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.

BGSF currently has a forward P/E ratio of 12.58, while WNS has a forward P/E of 25.16. We also note that BGSF has a PEG ratio of 0.63. 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. WNS currently has a PEG ratio of 1.91.

Another notable valuation metric for BGSF is its P/B ratio of 1.94. 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, WNS has a P/B of 6.31.

These metrics, and several others, help BGSF earn a Value grade of A, while WNS has been given a Value grade of C.

BGSF has seen stronger estimate revision activity and sports more attractive valuation metrics than WNS, so it seems like value investors will conclude that BGSF is the superior option right now.


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