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CGEMY or PAYX: Which Is the Better Value Stock Right Now?
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Investors with an interest in Outsourcing stocks have likely encountered both Cap Gemini SA (CGEMY - Free Report) and Paychex (PAYX - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cap Gemini SA and Paychex are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CGEMY likely has seen a stronger improvement to its earnings outlook than PAYX has recently. But this is just one piece of the puzzle 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 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.
CGEMY currently has a forward P/E ratio of 15.87, while PAYX has a forward P/E of 26.36. We also note that CGEMY has a PEG ratio of 1.81. 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. PAYX currently has a PEG ratio of 3.51.
Another notable valuation metric for CGEMY is its P/B ratio of 3.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PAYX has a P/B of 12.61.
These metrics, and several others, help CGEMY earn a Value grade of B, while PAYX has been given a Value grade of D.
CGEMY stands above PAYX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CGEMY is the superior value option right now.
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CGEMY or PAYX: Which Is the Better Value Stock Right Now?
Investors with an interest in Outsourcing stocks have likely encountered both Cap Gemini SA (CGEMY - Free Report) and Paychex (PAYX - 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Cap Gemini SA and Paychex are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that CGEMY likely has seen a stronger improvement to its earnings outlook than PAYX has recently. But this is just one piece of the puzzle 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 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.
CGEMY currently has a forward P/E ratio of 15.87, while PAYX has a forward P/E of 26.36. We also note that CGEMY has a PEG ratio of 1.81. 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. PAYX currently has a PEG ratio of 3.51.
Another notable valuation metric for CGEMY is its P/B ratio of 3.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, PAYX has a P/B of 12.61.
These metrics, and several others, help CGEMY earn a Value grade of B, while PAYX has been given a Value grade of D.
CGEMY stands above PAYX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CGEMY is the superior value option right now.