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EXLS or ADP: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Outsourcing sector have probably already heard of ExlService Holdings (EXLS - Free Report) and Automatic Data Processing (ADP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both ExlService Holdings and Automatic Data Processing are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EXLS currently has a forward P/E ratio of 31.28, while ADP has a forward P/E of 32.95. We also note that EXLS has a PEG ratio of 1.87. 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. ADP currently has a PEG ratio of 2.75.
Another notable valuation metric for EXLS is its P/B ratio of 8.70. 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, ADP has a P/B of 43.14.
These metrics, and several others, help EXLS earn a Value grade of B, while ADP has been given a Value grade of C.
Both EXLS and ADP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXLS is the superior value option right now.
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EXLS or ADP: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Outsourcing sector have probably already heard of ExlService Holdings (EXLS - Free Report) and Automatic Data Processing (ADP - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great 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.
Right now, both ExlService Holdings and Automatic Data Processing are sporting a Zacks Rank of # 2 (Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EXLS currently has a forward P/E ratio of 31.28, while ADP has a forward P/E of 32.95. We also note that EXLS has a PEG ratio of 1.87. 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. ADP currently has a PEG ratio of 2.75.
Another notable valuation metric for EXLS is its P/B ratio of 8.70. 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, ADP has a P/B of 43.14.
These metrics, and several others, help EXLS earn a Value grade of B, while ADP has been given a Value grade of C.
Both EXLS and ADP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that EXLS is the superior value option right now.