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PRDO vs. STRA: Which Stock Is the Better Value Option?
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Investors interested in Schools stocks are likely familiar with Perdoceo Education (PRDO - Free Report) and Strategic Education (STRA - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Perdoceo Education and Strategic Education are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PRDO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
PRDO currently has a forward P/E ratio of 8.33, while STRA has a forward P/E of 22.79. We also note that PRDO has a PEG ratio of 0.56. 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. STRA currently has a PEG ratio of 1.25.
Another notable valuation metric for PRDO is its P/B ratio of 1.38. 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, STRA has a P/B of 1.52.
These metrics, and several others, help PRDO earn a Value grade of A, while STRA has been given a Value grade of C.
PRDO has seen stronger estimate revision activity and sports more attractive valuation metrics than STRA, so it seems like value investors will conclude that PRDO is the superior option right now.
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PRDO vs. STRA: Which Stock Is the Better Value Option?
Investors interested in Schools stocks are likely familiar with Perdoceo Education (PRDO - Free Report) and Strategic Education (STRA - 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.
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 is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Perdoceo Education and Strategic Education are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that PRDO is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
PRDO currently has a forward P/E ratio of 8.33, while STRA has a forward P/E of 22.79. We also note that PRDO has a PEG ratio of 0.56. 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. STRA currently has a PEG ratio of 1.25.
Another notable valuation metric for PRDO is its P/B ratio of 1.38. 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, STRA has a P/B of 1.52.
These metrics, and several others, help PRDO earn a Value grade of A, while STRA has been given a Value grade of C.
PRDO has seen stronger estimate revision activity and sports more attractive valuation metrics than STRA, so it seems like value investors will conclude that PRDO is the superior option right now.