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III vs. ACN: Which Stock Is the Better Value Option?
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Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III - Free Report) and Accenture (ACN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Information Services Group has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #4 (Sell). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
III currently has a forward P/E ratio of 11.04, while ACN has a forward P/E of 23.76. We also note that III has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACN currently has a PEG ratio of 2.50.
Another notable valuation metric for III is its P/B ratio of 2.52. 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, ACN has a P/B of 7.47.
Based on these metrics and many more, III holds a Value grade of A, while ACN has a Value grade of C.
III stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that III is the superior value option right now.
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III vs. ACN: Which Stock Is the Better Value Option?
Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III - Free Report) and Accenture (ACN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
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 favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, Information Services Group has a Zacks Rank of #2 (Buy), while Accenture has a Zacks Rank of #4 (Sell). This means that III's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
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.
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.
III currently has a forward P/E ratio of 11.04, while ACN has a forward P/E of 23.76. We also note that III has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ACN currently has a PEG ratio of 2.50.
Another notable valuation metric for III is its P/B ratio of 2.52. 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, ACN has a P/B of 7.47.
Based on these metrics and many more, III holds a Value grade of A, while ACN has a Value grade of C.
III stands above ACN thanks to its solid earnings outlook, and based on these valuation figures, we also feel that III is the superior value option right now.